Elliott Files New Competition Law Claims Against HKEX and LME Over Nickel Trading
nashnova research
Hedge fund Elliott has pivoted to UK competition law after losing its judicial review on all fronts, filing a new claim accusing HKEX and the LME of abusing market dominance during the 2022 nickel crisis; the case hinges on whether the tribunal grants permission to serve.
What is the backstory?
On March 8, 2022, the LME canceled all nickel contract trades for that day after prices spiked — Elliott argued the decision cost it heavily.
Elliott then launched a judicial review challenging the cancellation's legality, but the UK High Court, Court of Appeal, and Supreme Court all ruled against it.
This means → Elliott exhausted every level of the UK court system on the question "Was the cancellation lawful?" — and lost at all three.
What changed in the new claim?
On September 3, 2026, Elliott filed a fresh claim with the UK Competition Appeal Tribunal — a specialist court for competition-law disputes.
The claim no longer challenges the cancellation itself. Instead, it accuses HKEX and the LME of violating Chapter II of the UK Competition Act 1998 — the prohibition on abuse of a dominant market position.
In plain terms = Elliott's argument shifted from "Your decision that day was illegal" to "As a market monopoly, your entire system was deficient."
What exactly is Elliott alleging?
Failure to prevent disorderly trading — Elliott says the LME lacked proper arrangements and systems for periods of severe market stress.
Failure to identify and manage conflicts of interest — implying the cancellation may have favored certain market participants.
Lack of transparency and non-discrimination — alleging the LME's framework did not meet the objective, proportionate standards required under competition law.
This means → if the tribunal upholds these claims, damages would be assessed separately — Elliott is essentially trying to convert a lost judicial review into a competition-law damages claim.
How has HKEX responded?
HKEX said it had not yet been formally served with the legal documents as of the announcement date — Elliott must first obtain the tribunal's permission to serve.
HKEX called the claim "without legal merit" and said it will defend vigorously.
This reflects a case that has not yet cleared even the procedural threshold: whether the tribunal grants permission to serve is the next critical milestone, and HKEX may challenge that permission itself.
市场有风险，内容仅供研究参考，不构成投资建议。