(Bloomberg) -- The U.K.’s markets regulator said it “is continuing to work closely” with the London Metal Exchange following the stop-start glitches at the nickel market and warned that it expected exchanges to deliver a “high standard of operational resilience.”
The Financial Conduct Authority said it expects exchanges to “address issues, and their root causes, promptly and effectively if they arise,” according to a statement Friday. The comments go beyond the FCA’s prior comments last week that called for a resumption of a “fair and orderly market in nickel.”
The LME is facing increasing scrutiny after reopening the nickel market with trading remaining essentially stalled. The turmoil last week led to skyrocketing prices leaving brokers and clients facing huge margin calls against loss-making positions.
A LME spokesperson had no immediate comment.
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