I've been looking at the #Nickel trade data for Tuesday morning and the cancelled #LME trades.
The numbers are quite staggering:
The numbers are quite staggering:
9,064 lots traded
VWAP of $71,743
Contract value = $3.9bn !!!!
#LME has cancelled all of these #Nickel trades.
By moving the price back to $48,078 they have wiped out $1.3bn of PnL on these trades.
VWAP of $71,743
Contract value = $3.9bn !!!!
#LME has cancelled all of these #Nickel trades.
By moving the price back to $48,078 they have wiped out $1.3bn of PnL on these trades.
I have traded on the #LME since 1994 and have seen many trades cancelled in that time - always because of genuine fat-fingered mistakes. Market participants are Gentlemen and are happy to cancel mistakes because you never know when you will make one.
...but for an exchange to cancel 5,179 trades for a total of 9,064 lots, and to do so retrospectively, does not sit well with me at all. These were between willing buyers and willing sellers in a functioning market.
#LME #Nickel
#LME #Nickel
This creates serious credibility issues for the #LME. Where is the line? If they can do this retrospectively in #Nickel, what else can they do? How can you trade on an exchange if you do not have certainty that your profits will be paid and others will be let off losses?
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