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LME chief to stay put after ditching move to crypto start-up

The head of the London Metal Exchange has decided to stay in the job, following plans to join a digital assets start-up, with the 145-year-old City Institution seeking to repair a reputation damaged by the recent chaos in the nickel market.

Matthew Chamberlain, CEO, said that the events of recent weeks have brought to the fore the importance of the LME and the metal markets. And other industrial metals since 1877.

“I want to continue working with the team to support the health and long-term efficiency of the market and drive the sustainable development of our industry,” he said in a statement.

The LME got into a crisis last month after Russia’s invasion of Ukraine raised concerns about a shortage of supplies and blackmailed the position of Chinese metal tycoon Xiang Guangdah, who engaged in a huge gamble on falling prices.

Prices increased 250 percent Within days, that forced the LME to suspend trading and cancel billions of dollars in deals because of fears that some of its small members were pushed to the brink of failure due to the size of the move.

But the decision to delete a trading day has sparked outrage among other losing clients, and the IMF warned this month that the stock market administration needs to be strengthened to deal with conflicts of interest.

The LME, which has denied that parent company Hong Kong Exchanges and Clearing influenced its decision, is looking for at least two independent directors to join its board of directors.

It launched an independent review of the chaos in March in time Regulators in the UK Conduct separate investigations to determine “what lessons can be learned.” Said Chamberlain Off-exchange trading was so big And it was not reported that the LME relieved only one-fifth of the market.

Chamberlain, a former banker who helped sell the LME to HKEX in 2013, has led it since 2017, but has been frustrated by his efforts to reform the stock market that manages Europe’s latest personal trading floor. A plan to close LME’s unique natural trading floor with its unique red sofas was shelved after brokers and industrial traders opposed the move to a fully fledged e-market.

he was Due to the departure of the LME On Friday to join Cumaino, a business backing digital assets backed by Nomura and hedge fund manager billionaire Alan Howard.

But after the board approached him three weeks ago with a proposal, he decided to change his mind and got a new multi-year contract. Its first task will be to launch an independent review of recent events in the nickel market, which may ultimately provide the leverage needed to modernize parts of LME’s complex market structure.

Comano said plans not to proceed were reciprocal. “We part in a friendly way and wish Chamberlain the best as he continues in his role as CEO of the London Metal Exchange,” said Hanson Orser, Comano’s acting CEO.

Adrian Farnham, head of the LME clearing house, was due to take up his post as interim director while the stock exchange sought a replacement. However, the LME said on Wednesday that Farnham would instead continue with his planned retirement, while CFO Catherine Lester would not return after a holiday that preceded the nickel scandal.

“I am very pleased that Matt has decided to stay. He is leading from the front, exemplified in his handling of unprecedented developments in the nickel market in recent weeks,” said Nicholas Egozin, CEO of HKEX.

LME chief to stay put after ditching move to crypto start-up Source link LME chief to stay put after ditching move to crypto start-up

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