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LME to Triple Clearing Members Capital Needs After Nickel Crisis
The London Metal Exchange’s clearing house plans to triple capital requirements for members in the latest reform aimed at strengthening the market following the nickel short-squeeze crisis more than two years ago. LME Clear is proposing to raise the minimum net capital required from members to $30 million from $10 million, it said on Thursday — a move that’s likely to raise the barriers to entry for any potential new players on the 147-year-old exchange. It’s one of an array of steps the LME has taken in the wake of the nickel crisis in March 2022 that threw the viability of the market into doubt. The ... (full story)