On 2 September, FIA responded to an independent review of the nickel market disruption on the London Metal Exchange. The review is being conducted by Oliver Wyman, a consulting firm, on behalf of LME.
In its response, FIA outlined the importance of having robust volatility control mechanisms in place. FIA also emphasised the need for robust and efficient risk management processes, such as the ability to promptly reassess market conditions and potential risks, appropriately monitor concentration, and adjust margin levels in a timely fashion. FIA also noted that its members have raised topics that go beyond the four covered in the review, such as the importance of efficient and effective communication as well as improved transparency of rules regarding trade cancellations provisions.
Read the full response here.
