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Judicial review: Elliott Associates and Jane Street Global Trading

Background to the litigation

Elliott Associates and Jane Street Global Trading have begun lawsuits (specifically, claims for judicial review, and under the Human Rights Act 1998), which challenge decisions made by the LME in relation to the nickel market on 8 March 2022.

The LME’s position

The LME has set out further information regarding the decisions made on 8 March, and why they were taken, in notice 22/057.

The LME acted to secure a fair and orderly market in the interests of the market as a whole. It is the LME’s view that the actions taken on 8 March were within the LME’s powers, and that those powers were exercised fairly and proportionately.

Current status

Elliott and Jane Street received permission for their claims to proceed to the next stage in October 2022. The LME filed its detailed grounds of defence in November 2022. The LME continues to vigorously defend itself against the lawsuits brought by Elliott and Jane Street.

Pre-action disclosure: AQR Capital, DRW Commodities, Flow Traders, Capstone Investment Advisors and Winton Capital Management

In September 2022 hedge fund AQR Capital and four other parties (DRW Commodities, Flow Traders, Capstone Investment Advisors and Winton Capital Management) filed pre-action disclosure applications seeking further information and documents from the LME, surrounding the LME’s decisions in relation to the nickel market on 8 March 2022.

None of these applicants have brought any substantive claims against the LME. Their position is that this information is necessary in order for them to consider their legal position with respect to the LME’s decisions. The LME will set out its arguments opposing the application in due course.