Following the suspension and cancellation of nickel trades earlier this year, fund manager Elliott Associates has sued the London Metal Exchange (LME) for $456 million (£365 million).
The claim was filed against the trading platform and its subsidiary LME Clear in the English High Court.
It claims that the LME’s decision to cancel trades on March 8 due to a surge in nickel prices was “illegal.”
Rechargeable batteries and stainless steel contain the metal.
However, obtaining nickel has become more difficult, owing in part to the conflict in Ukraine, as Russia is one of the world’s largest producers of the metal.
The Hong Kong Exchanges and Clearing (HKEX), which owns the LME and LME Clear, said in a statement on Monday that nickel prices “increased dramatically over a short period” in the early hours of March 8, UK time.
According to the statement, the LME cancelled all nickel trades executed after midnight and suspended nickel trading beginning at 8.15 a.m.
According to the statement, Elliott Associates claims the cancellations were “unlawful on public law grounds” and “constituted a violation” of its rights.