LME Nickel Crisis Prompts UK Enforcement Probe

The video discusses the high-stakes situation in the nickel market, leading to an unprecedented enforcement action by the FCA against the London Metal Exchange. The FCA aims to investigate potential misconduct and improve systems and controls. The Bank of England also recommends strengthening governance and risk management at the clearing house.

What was the main issue that led to the high-stakes situation in the nickel market?

• A sudden increase in nickel prices

• A significant drop in nickel prices

• A new regulation on nickel trading

• A merger of major nickel companies

What action did the FCA announce regarding the London Metal Exchange?

• An enforcement action

• A new trading platform

• A reduction in trading hours

• A partnership with hedge funds

Since when has the FCA been monitoring the London Metal Exchange?

• Since January last year

• Since March last year

• Since June last year

• Since December last year

Why is the FCA's enforcement action considered unprecedented?

• It is the first action against a government body

• It is the first action against a bank

• It is the first action against a hedge fund

• It is the first action against an exchange

What additional measures did the Bank of England require from the LM's clearing house?

• Increase in trading volume

• Strengthening governance and improving risk management

• Reduction in staff

• Expansion into new markets