Judicial review: Elliott Associates and Jane Street Global Trading
Background to the litigation
Elliott Associates and Jane Street Global Trading are pursuing 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
On 29 November 2023, the Divisional court ruled in favour of the LME and LME Clear on all grounds, confirming that the actions taken in the nickel market in 2022 were lawful, rational and in accordance with the LME’s rules. The judgment recognises the LME’s obligation to maintain orderly markets and its powers to intervene to this end, including by cancelling trades.
Following a hearing in July 2024, the Court of Appeal also dismissed Elliott’s appeal on 7 October 2024.
Download the full Court of Appeal judgment (PDF)
Download the full Divisional Court judgment (PDF)
Additional claims
A further three claims were issued in the English Commercial Court against the LME and LME Clear in March 2023 by claimants seeking damages under the Human Rights Act 1998. The claimants are: 1) AQR Capital Management LLC, DRW Commodities LLC, Flow Traders BV, Capstone Investment Advisors LLC and Winton Capital Management Limited; 2) Commodity Asset Management LLC, Pala Investments Limited, Pentimon Limited, Welton Investment Partners LLC and Sunrise Capital Partners LLC; and 3) Double Eight Limited. As these lawsuits do not raise any issues that are not already the subject of the claims brought by Elliott and Jane Street, the parties have agreed a stay of these additional lawsuits pending the final determination of the Elliott and Jane Street lawsuits.
The LME’s position
The LME has set out in court filings the full details of its decision-making and explained the significant consequences that would have arisen for the entire market if it had not taken the action which it did. All the actions taken on 8 March were lawful and made in the interest of the market as a whole.
The LME remains confident that it will successfully defend the claims brought against it.
Previous applications
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. The LME opposed the applications and argued they were wholly misconceived and that the requested disclosure was unnecessary.
On 23 December the court found in favour of the LME and rejected the applications in their entirety.