When a giant Chinese producer seemed unlikely to meet margin calls on nickel contracts this week, the London Metal Exchange (LME) stepped in and saved it, reports the Wall Street Journal.
China’s Tsingshan Holding faced margin calls on trades of about $1 billion, but instead of letting it fail the LME canceled the day’s more than 9,000 trades worth some $4 billion, the WSJ reported. “What is almost unprecedented here is that the exchange authorities decided to save them with money taken from other traders, who otherwise would be sitting on fat profits,’’ the story says. Full story: Wall Street Journal.
Read more: Nickel’s $100k Spike on Short Squeeze Prompts Trading Halt