By Nell Mackenzie
– A high court judge on Friday dismissed a case against the London Metal Exchange brought by hedge fund AQR Capital Management and others that demanded phone call transcripts and meeting notes about the exchange’s decision in March to cancel nickel trades.
Justice Adrian Beltrami said in his ruling at the King’s Bench Division of London’s High Court he considered “the merits of the case as weak”.
AQR Capital Management said after the ruling it would continue to evaluate all legal options.
Together with other funds, AQR filed a legal application in September after an extreme price spike in nickel trading led the LME in March to cancel deals worth billions of dollars, which the funds said led to “significant losses” for market participants.
The other claimants in the filing were Winton Capital Management, Capstone Investment Advisors, Flow Traders and DRW Commodities.
The group has a right to appeal the decision within 21 days, a representative from the court office said.
In emailed comment, AQR Capital Management said it was disappointed the court did not agree on the need for additional disclosure from the LME following its “unprecedented decision to unilaterally cancel agreed upon trades”.
Winton declined to comment. The others were not immediately available for comment when contacted by Reuters.
The London Metal Exchange was represented by global law firm Hogan Lovells, instructing Brick Court Chambers.
“Hogan Lovells has today secured an important victory for its client the London Metal Exchange (LME),” it said in a statement.
“This application was misconceived from the start – the LME having already provided a detailed explanation of its decision-making,” the LME said in a statement.
The LME also faces lawsuits from U.S. hedge fund Elliott Associates and Jane Street Global Trading, which are suing the LME for $456 million and $15.3 million, respectively, for the cancelled nickel trades.