Update (1400ET): In what appears to be LME’s latest attempt to ‘manage’ Xiang’s outsize position risk, the exchange is ‘changing the rules’ (one might say):
Due to the uncertainty of a firm resumption date and the potential for excessive volatility immediately upon resumption, S&P Dow Jones Indices (“S&P DJI”) will implement the following with effect as of this announcement:
1) The London Metal Exchange currently anticipates that it will set a maximum limit-up and limit-down for all outright contracts in Nickel when trading resumes. A limit event would constitute a market disruption event for index purposes.
2) For the remaining portion of the roll which has not yet been achieved (as indicated in the table below), S&P Dow Jones Indices will implement an Unscheduled Roll Event over a two-day roll period as further described in our S&P Commodities Indices Policies & Practices Methodology. The roll will begin on the third (consecutive or non-consecutive) London Metal Exchange business day in which the Nickel contract settles absent of a market disruption event.