Trading suspension of LME Nickel markets
Update: On 14 March 2022 the London Metal Exchange announced that trading in LME Nickel Contracts will resume at 08:00 (GMT) on Wednesday 16 March 2022. Full details of this announcement can be found in the link below.
On 8 March 2022, the London Metal Exchange (LME) suspended trading for the Nickel market with no anticipation of resuming trading earlier than 11 March 2022.
During this period, investors can expect that exchange-traded products (ETPs) with exposure to Nickel will be subject to wider spreads and potential trading disruptions which reflect the uncertainties around the underlying market. Disruptions may include temporary or sustained removal of bid/ask quotes for ETPs very wide bid/ask spreads or products going into auction.
Index disruption
+ Both Bloomberg Commodity and S&P GSCI Indices have used Nickel settlement prices on 7 March 2022 as the closing price for 8 March 2022. Hence, the Nickel component price has been frozen in the commodity basket indices since 7 March 2022 and it is expected that it will continue to freeze in the index calculations for the duration of the LME trading suspension.
+ While the Nickel component is frozen in the underlying index, the price of the ETPs quoted on exchanges may deviate from index values in intraday trading.
+ WisdomTree products which track Bloomberg Commodity Indices will halt the rolling of Nickel contracts, based on the Index's Market Disruption Event handling rules.
+ Where index disruption causes an impact on the ability to price WisdomTree ETPs referencing those indices, we will monitor and take actions permitted under the relevant product documentation in terms of suspending pricing or working to provide alternative prices where possible.
WisdomTree is monitoring the situation very closely, working with exchanges and market makers to ensure all Nickel related products remain open and continue to function as close to normal market conditions under these extreme circumstances.
To date, all WisdomTree's ETPs with exposure to Nickel have remained open to creations and redemptions in the primary market. It is impossible to guarantee how market conditions will evolve and we will be considering all permissible options to ensure our investors, our products and the market experience the least amount of disruption possible.
For full details of the announcements:
+ The London Metal Exchange original announcement on 8 March 2022
+ The London Metal Exchange updated announcement update on 8 March 2022
+ Index Announcement: BCOM Handling of Market Disruption Event for LME Nickel
+ The London Metal Exchange announcement for the resumption of trading