The London Metal Exchange's (LME) three-month nickel contract hit its lower trading limit of when it reopened on Wednesday, after extreme volatility in prices forced a market shutdown last week. The London Metal Exchange (LME) said on Wednesday that a system error allowed a small number of nickel trades to go through below its newly imposed daily price limit, forcing the exchange to halt the nickel market shortly after reopening.
The LME said it is investigating the IT system error and would attempt to re-open soon.
The LME installed trading limits at 5% above or below the last closing price on before the suspension on March 8, when extreme volatility forced the market to be closed.
The last closing price of nickel before the trading halt was $48,078.
The LME had said if a price limit was hit, trading would not be suspended, but any bids above the higher limit or offers below the lower limit would be rejected