Market data impact of the nickel market disruption

Following the recent suspension of the London Metal Exchange nickel market and the introduction of the Disruption Event framework by the LME, we lay out the impact of the changes in Fastmarkets products.

The LME Nickel market was suspended March 8-15. The market was disrupted March 16-21 and March 23-24.  

Please see LME Notice 22/092 - Consolidated Guidance on Disruption Events and Updated Guidance on the calculation of Monthly Average Settlement Prices in regard to the Averages methodology in the event of a disrupted Official. This supersedes LME Notice 22/064.

Fastmarkets has recalculated the March Nickel Average as per LME Notice 22/092. We will endeavor to remove any further disrupted Officials from the Averages calculation by 5pm London time on each disrupted day should it happen. The status for each product is as follows:

  • Fastmarkets MyDesk
    • “LME Averages Calculator” and “LME Averages” show the updated March average as per the LME’s methodology outlined in Notice 22/092. 
    • “LME Official Prices” shows all Officials, including disrupted days, at the exchange’s request. As per Notice 22/092, there were no Officials published during the suspension. The average calculation here includes the disrupted Officials. To avoid doubt, this means that the March Nickel Average displayed in “LME Official Prices” is different from the March Nickel Average displayed in the “LME Averages Calculator” and the “LME Averages”.
  • Fastmarkets platform
    • LME Averages in the Exchange Data Report widget displays March Averages and matches the methodology in LME Notice 22/092.
    • The Officials symbols show all Officials, including disrupted days, at the exchange’s request. As per Notice 22/092, there were no Officials published during the suspension.
  • Fastmarkets AMM
    • March Averages are published in these services as per LME Notice 222/092. If clients use the rolling averages functionality, they will calculate the March average using disrupted Officials.
    • The Officials shown in the Officials instruments include the disrupted Officials. As per Notice 22/092, there were no Officials published during the suspension.
  • Fastmarkets MB
    • The March average is displaying as per LME Notice 22/092.
    • The Officials shown in the Officials instruments include the disrupted Officials. As per Notice 22/092, there were no Officials published during the suspension.

Fastmarkets clients who use the DDE Server or copy and paste Officials into Excel to calculate the LME Officials themselves should refer to the LME notice mentioned above and adjust their calculations manually.

For more information, please refer to https://www.lme.com/en/News.

Fastmarkets MB staff

Published

Fastmarkets MB staff

April 06, 2022

22:25 GMT

London