The LME Nickel Crisis with Jack Farchy
The HC Commodities Podcast
00:00
The Moral Hazards of the LME Exchanges
Chan Shang had a short nickel position on the LME. He made about a billion dollars of losses we reported on on the pure LME position part of it obviously the high nickel price has benefited his nickel business and so he's doing more or less fine. The other side of this story then comes back to the LME exchanges moral hazard and even its structure. If they hadn't canceled the trades then a whole load of different brokers would have gone bust I mean they say that the stability of the LME itself was never in question but if you take a look at some of the filings that they've made in in one of the lawsuits that's working its way through the courts at the moment
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