HKEX expected to cover damages in LME nickel lawsuits
Legal costs cannot be passed to members as non-default losses under the LME’s rule book, lawyers say
Clearing members of the London Metal Exchange are not expected to foot the bill for any damage awards or lawsuit settlements over the cancellation last year of nickel trades worth billions of dollars, according to multiple sources familiar with the exchange’s rule book.
Hong Kong Exchanges and Clearing (HKEX), which owns the LME, has confirmed to Risk.net that LME Clear’s rule book does not allow it to allocate damages awarded in lawsuits to members as non-default losses (NDLs).
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