Crisis-hit LME's clearing house names former LSE CFO as chair
LONDON (Reuters) - The London Metal Exchange's clearing house, which was hit by a 2022 nickel crisis, has appointed David Warren, former chief financial officer of the London Stock Exchange, as chairman from July 20, it said on Wednesday.
The LME, the world's largest and oldest metals forum, is grappling with a lawsuit and reduced nickel trading volumes after the events of March 2022, when nickel prices doubled in a matter of hours. The LME suspended nickel trading for more than a week and cancelled trades worth billion of dollars.
James Cressy, interim LME Clear chief executive, said in a statement Warren's knowledge of financial infrastructure would help the LME to enhance its clearing capabilities.
Warren, who was LSE CFO from 2012 to 2020, said LME Clear was "a vital and critical component of the industry and the market," adding it would play "a key role in supporting its global customers in the years ahead".
The lawsuit between two financial firms and the LME following last year's trading halt could have consequences for London's status as a global financial centre.
Other exchanges are worried that if the LME loses its legal case, they could face curbs on their ability to react in the event of a crisis.
(This story has been refiled to remove the company identifier)
(Reporting by Polina Devitt; Editing by Louise Heavens and Barbara Lewis)
