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MFA Statement on the Independent Review of LME’s Handling of the Nickel Crisis

Washington, DC – Managed Funds Association Head of Global Regulatory Affairs Jennifer Han today issued the following statement in response to the report from the independent review of the London Metal Exchange’s handling of the nickel crisis in March 2022:

“The independent review has confirmed our concerns that the LME lacked the systems and controls to manage through the March 2022 nickel crisis, but it is essential that a robust regulatory review addresses how LME failed in its regulatory function. LME failed to maintain an orderly market, manage conflicts of interest, and protect investors in the nickel market and must institute controls so market participants can engage in these markets with confidence. Alternative asset managers rely on sound markets to deliver reliable returns for institutional investors such as pensions, especially during times of market volatility.”

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About the Global Alternative Investment Industry

The global hedge fund and alternative asset management industry, including hedge funds, credit, managed futures, and hybrid funds that invest in private companies, has assets under management of $4.3 trillion (Q3 2021). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.

About the Managed Funds Association

Managed Funds Association (MFA) represents the global alternative investment industry and its investors by advocating for regulatory, tax, and other public policies that foster efficient, transparent, and fair capital markets. MFA’s more than 150 member firms collectively manage nearly $2.6 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time. MFA has a global presence and is active in Washington, London, Brussels, and Asia. www.managedfunds.org.