A Nickel For Your Thoughts
With The London Metals Exchange (LME) continuing their trade suspension of Nickel through tomorrow I got bored and went down a rabbit hole.
The Worlds Largest position holder in Nickel, Tsingshang Holdings Group is owned by a gentleman known in Chinese Commodity circles as the “Big Short”. His name Xiang Guangda. Last year in a move to collapse the price of Nickel Guangda intervened during supply chain issues in order to heighten Tsingshang’s profits and attempted the strangle hold of global Nickel markets. SOURCE
We’ll fast forward to this week where LME has suspended trading. In a seemingly mockery of an article the FT calls this sub out in particular HERE while discussing the Nickel squeeze. What is of note in the article though is that LME gave Tsingshang additional time to meet a margin call. This was done after trading was suspended and the price of Nickel went from over $100K and back tracked to just over $48K.
Not only does this seem like blatant complicity and manipulation in the commodities market, LME now once major stake holders to take “profits” at a extremely reduced rate. Their Memo here are their guidelines to open trading back up. Pay particular attention to paragraphs 16 and 17. This is where I was dumbfounded as it’s written almost as an involuntary “voluntary Net-off”. Essentially insert pawn stars meme best I can do is, is what they’re saying.
This form of blatant disregard for standard market practices while forcing people to think “it’s in everyone’s best interest” should be appalling. As the title states a “Nickel for Your Thoughts” as I’m as smooth brained as a new borns ass.
Submitted March 11, 2022 at 03:21AM by Hopeless_Dreams713
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