HKEX and LME Face New Elliott Claim Over Nickel Trading, Alleging UK Competition Law Breach
Hong Kong Exchanges and Clearing (HKEX) and its subsidiary the London Metal Exchange (LME) have been named as defendants in a new claim filed by Elliott on September 3 with the UK Competition Appeal Tribunal. Elliott alleges that HKEX and LME breached Chapter II of the UK Competition Act 1998 by abusing a dominant position, including failing to implement adequate arrangements to prevent disorderly trading during market stress. HKEX says the claim is without merit and will vigorously defend it.
Hong Kong Exchanges and Clearing Limited (HKEX) and its subsidiary the London Metal Exchange (LME) have been named as defendants in a new claim brought by Elliott over its nickel trading. The claim, filed with the UK Competition Appeal Tribunal on September 3, is referred to as the "2026 Competition Appeal Tribunal Claim."
In the claim, Elliott alleges that HKEX and LME breached Chapter II of the UK Competition Act 1998, which prohibits abuse of a dominant market position. The alleged breaches include failing to implement appropriate arrangements and systems to prevent disorderly trading during periods of significant market stress, failing to monitor and manage trading volatility in the LME nickel futures contract market, failing to identify and manage conflicts of interest, and failing to operate their arrangements and systems within a framework of substantive criteria that are transparent, objective, non-discriminatory, and proportionate.
Should the tribunal rule in Elliott's favour, the amount of compensation would be assessed by the tribunal. HKEX considers the claim to be without legal merit and will vigorously defend against it. The content of the relevant announcement does not constitute, and should not be interpreted as, an acceptance by HKEX of the tribunal's jurisdiction.