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Joseph Oughourlian, the founder of activist hedge fund Amber Capital, is fighting to maintain control of Spain’s most influential media group, Promotora de Informaciones SA (Prisa), as a coalition of pro-government Spanish investors seeks to push him out, according to a report by Bloomberg.

For over a decade, Oughourlian has been the driving force behind Prisa, the owner of Spain’s leading newspaper El País, leveraging his nearly 30% stake – the maximum allowed before he must make a takeover offer – to steer its strategic direction. However, tensions with Spain’s ruling Socialist party have escalated, particularly after he blocked plans for a new pro-government television station.

Now, a shareholder group led by television producer and former Prisa executive José Miguel Contreras — holding nearly 19% of the company — is working to remove him.

The battle has transformed into one of Spain’s most high-profile corporate disputes, drawing parallels with last year’s high-stakes short-selling attack on pharmaceutical giant Grifols SA. This fight though, has broader implications, pitting a foreign hedge fund investor — backed by French billionaire Vincent Bolloré — against Spain’s political establishment in a test of foreign ownership in national media.

The outcome of this power struggle may hinge on the support of Bolloré’s Vivendi SE, Prisa’s second-largest shareholder. Oughourlian is actively working to maintain Vivendi’s backing, while his opponents are reportedly exploring ways to influence the French tycoon’s stance, including leveraging the state-backed telecom giant Telefónica SA’s business ties with Bolloré’s advertising firm Havas.

Reports indicate that Spanish Digital Affairs Minister Óscar López and Telefónica Chairman Marc Murtra recently met with Vivendi’s CEO in Paris to discuss the situation. While López has denied any link between the meeting and Prisa, the gathering has fueled speculation over potential government intervention.

Prisa’s financial situation adds another layer of complexity to the fight. The company is burdened with €800m in debt, and Oughourlian is negotiating with creditors—including Pimco—to refinance upcoming maturities. As part of this effort, he is reportedly pushing for a “key-man” clause that would trigger changes in debt terms if he is removed, effectively creating a poison pill to deter his ouster.

A potential capital increase is also under discussion, which could further shift the power dynamics among major shareholders, including Mexican billionaire Carlos Slim and Banco Santander—both of whom have yet to take sides in the dispute.

With a critical shareholder meeting scheduled for June, both factions are intensifying efforts to rally investor support. Oughourlian has taken an increasingly combative stance, assuming the role of El País chairman on 16 March. The next day, he published an op-ed comparing attempts to wrest control of the newspaper to tactics used during Spain’s Franco era – an incendiary reference as the country approaches the 50th anniversary of the dictator’s death.

Adding another layer of intrigue, Prisa’s 2023 issuance of convertible bonds could come into play. The pro-government camp fears that Oughourlian or an ally may hold a significant unconverted stake, potentially tilting the balance in his favour when voting rights are exercised.

Joseph Oughourlian, the founder of activist hedge fund Amber Capital, is fighting to maintain control of Spain’s most influential media group, Promotora de Informaciones SA (Prisa), as a coalition of pro-government Spanish investors seeks to push him out, according to a report by Bloomberg.

For over a decade, Oughourlian has been the driving force behind Prisa, the owner of Spain’s leading newspaper El País, leveraging his nearly 30% stake – the maximum allowed before he must make a takeover offer – to steer its strategic direction. However, tensions with Spain’s ruling Socialist party have escalated, particularly after he blocked plans for a new pro-government television station.

Now, a shareholder group led by television producer and former Prisa executive José Miguel Contreras — holding nearly 19% of the company — is working to remove him.

The battle has transformed into one of Spain’s most high-profile corporate disputes, drawing parallels with last year’s high-stakes short-selling attack on pharmaceutical giant Grifols SA. This fight though, has broader implications, pitting a foreign hedge fund investor — backed by French billionaire Vincent Bolloré — against Spain’s political establishment in a test of foreign ownership in national media.

The outcome of this power struggle may hinge on the support of Bolloré’s Vivendi SE, Prisa’s second-largest shareholder. Oughourlian is actively working to maintain Vivendi’s backing, while his opponents are reportedly exploring ways to influence the French tycoon’s stance, including leveraging the state-backed telecom giant Telefónica SA’s business ties with Bolloré’s advertising firm Havas.

Reports indicate that Spanish Digital Affairs Minister Óscar López and Telefónica Chairman Marc Murtra recently met with Vivendi’s CEO in Paris to discuss the situation. While López has denied any link between the meeting and Prisa, the gathering has fueled speculation over potential government intervention.

Prisa’s financial situation adds another layer of complexity to the fight. The company is burdened with €800m in debt, and Oughourlian is negotiating with creditors—including Pimco—to refinance upcoming maturities. As part of this effort, he is reportedly pushing for a “key-man” clause that would trigger changes in debt terms if he is removed, effectively creating a poison pill to deter his ouster.

A potential capital increase is also under discussion, which could further shift the power dynamics among major shareholders, including Mexican billionaire Carlos Slim and Banco Santander—both of whom have yet to take sides in the dispute.

With a critical shareholder meeting scheduled for June, both factions are intensifying efforts to rally investor support. Oughourlian has taken an increasingly combative stance, assuming the role of El País chairman on 16 March. The next day, he published an op-ed comparing attempts to wrest control of the newspaper to tactics used during Spain’s Franco era – an incendiary reference as the country approaches the 50th anniversary of the dictator’s death.

Adding another layer of intrigue, Prisa’s 2023 issuance of convertible bonds could come into play. The pro-government camp fears that Oughourlian or an ally may hold a significant unconverted stake, potentially tilting the balance in his favour when voting rights are exercised.

Data has fundamentally altered the way the hedge fund industry trades and operates. There is an ever-growing use of quantitative strategies and two-thirds of hedge funds currently use data in their investment decision-making to manage portfolios and analyze portfolio risk. This Hedgeweek rapid read report, published in partnership with MSCI, explores how hedge funds use data.

Data has fundamentally altered the way the hedge fund industry trades and operates. There is an ever-growing use of quantitative strategies and two-thirds of hedge funds currently use data in their investment decision-making to manage portfolios and analyze portfolio risk. This Hedgeweek rapid read report, published in partnership with MSCI, explores how hedge funds use data.

Cybersecurity firm Rapid7 is close to reaching a settlement with activist hedge fund firm Jana Partners, following discussions on strategies to enhance shareholder value, including operational improvements and a potential sale, according to a report by Reuters.

The report cites unnamed sources familiar with the matter as revealing that under the proposed agreement, three new directors would be added to the company’s eight-member board, signalling a significant governance shift. The deal could be announced as early as this week, though discussions remain fluid, the sources noted.

Jana Partners, which disclosed a 5.8% stake in Rapid7 in March, has been pushing for changes as the company grapples with declining share performance. Over the past year, Rapid7’s stock has dropped 41%, with a 28% decline year-to-date, bringing its market capitalisation down to approximately $1.8bn.

The Boston-based firm, which specialises in vulnerability management and cybersecurity solutions, has faced increasing competitive pressures as corporate clients scale back security spending amid macroeconomic uncertainty.

Reuters previously reported that Rapid7 had engaged investment bankers to explore strategic alternatives after attracting acquisition interest from private equity firms, including Advent, Bain Capital, and EQT.

Cybersecurity firm Rapid7 is close to reaching a settlement with activist hedge fund firm Jana Partners, following discussions on strategies to enhance shareholder value, including operational improvements and a potential sale, according to a report by Reuters.

The report cites unnamed sources familiar with the matter as revealing that under the proposed agreement, three new directors would be added to the company’s eight-member board, signalling a significant governance shift. The deal could be announced as early as this week, though discussions remain fluid, the sources noted.

Jana Partners, which disclosed a 5.8% stake in Rapid7 in March, has been pushing for changes as the company grapples with declining share performance. Over the past year, Rapid7’s stock has dropped 41%, with a 28% decline year-to-date, bringing its market capitalisation down to approximately $1.8bn.

The Boston-based firm, which specialises in vulnerability management and cybersecurity solutions, has faced increasing competitive pressures as corporate clients scale back security spending amid macroeconomic uncertainty.

Reuters previously reported that Rapid7 had engaged investment bankers to explore strategic alternatives after attracting acquisition interest from private equity firms, including Advent, Bain Capital, and EQT.

Hedge funds trading FX may soon find a familiar voice on the other end of the line with Robert Diehl, a seasoned FX trader with nearly three decades of experience across major banks, having taken on a broking role at Caventor Capital according to a report by eFinancial Careers.

Diehl, who previously held senior FX trading positions at RBS, UBS, and Unicredit, has joined Caventor – the agency brokerage arm of Boston Consulting Group (BCG) – following a brief hiatus after Unicredit reportedly shifted its FX trading operations from London to Milan in early 2023.

Unlike his past roles overseeing CEEMEA FX options, emerging markets trading, and global FX derivatives, Diehl is understood to be stepping into a sales position at Caventor, leveraging his expertise to attract hedge fund clients.

Caventor, which has been quietly building its hedge fund client base, appears to be reinforcing its team with industry heavyweights. Alongside Diehl, the firm has recruited Paul Lynn, a former Credit Agricole sales head, and James Ludlam, a former Nomura trader.

Hedge funds trading FX may soon find a familiar voice on the other end of the line with Robert Diehl, a seasoned FX trader with nearly three decades of experience across major banks, having taken on a broking role at Caventor Capital according to a report by eFinancial Careers.

Diehl, who previously held senior FX trading positions at RBS, UBS, and Unicredit, has joined Caventor – the agency brokerage arm of Boston Consulting Group (BCG) – following a brief hiatus after Unicredit reportedly shifted its FX trading operations from London to Milan in early 2023.

Unlike his past roles overseeing CEEMEA FX options, emerging markets trading, and global FX derivatives, Diehl is understood to be stepping into a sales position at Caventor, leveraging his expertise to attract hedge fund clients.

Caventor, which has been quietly building its hedge fund client base, appears to be reinforcing its team with industry heavyweights. Alongside Diehl, the firm has recruited Paul Lynn, a former Credit Agricole sales head, and James Ludlam, a former Nomura trader.

Hedge fund Elliott Associates is exploring additional steps to take against the London Metal Exchange (LME) over the cancellation of nickel trades in March 2022, the firm confirmed on Monday, according to a report by Reuters.

The US-based hedge fund, which has already claimed damages of $456.4m, is challenging the LME’s decision to suspend nickel trading after prices surged to a record high of over $100,000 per tonne on 8 March, 2022. The LME subsequently voided all trades on that day.

This development comes after the UK’s financial regulator, the Financial Conduct Authority (FCA), last week fined the LME £9.2m for its mishandling of the nickel market, marking the first-ever enforcement action against a UK exchange.

In response, Elliott said it is “carefully reviewing the FCA’s Final Notice” and is considering what further action, if any, it may take in relation to the matter.

Hedge fund Elliott Associates is exploring additional steps to take against the London Metal Exchange (LME) over the cancellation of nickel trades in March 2022, the firm confirmed on Monday, according to a report by Reuters.

The US-based hedge fund, which has already claimed damages of $456.4m, is challenging the LME’s decision to suspend nickel trading after prices surged to a record high of over $100,000 per tonne on 8 March, 2022. The LME subsequently voided all trades on that day.

This development comes after the UK’s financial regulator, the Financial Conduct Authority (FCA), last week fined the LME £9.2m for its mishandling of the nickel market, marking the first-ever enforcement action against a UK exchange.

In response, Elliott said it is “carefully reviewing the FCA’s Final Notice” and is considering what further action, if any, it may take in relation to the matter.

Dubai is considering sweeping regulatory changes aimed at strengthening its position as a global hub for hedge funds, with the emirate’s financial watchdog reviewing key policies to reduce barriers for money managers, according to a report by Bloomberg.

The Dubai Financial Services Authority (DFSA) is undertaking a comprehensive review of existing regulations to streamline requirements and eliminate unnecessary regulatory burdens, a spokesperson for the agency confirmed. The DFSA oversees the Dubai International Financial Centre (DIFC), home to a growing number of hedge funds and investment firms.

Among the proposed changes is a reduction in minimum capital requirements for certain asset managers. The DFSA is also evaluating adjustments to liquidity requirements, including lowering the amount of emergency capital firms must hold and potentially removing the need for regulatory approval when hiring key personnel.

If implemented, these reforms would mark the most significant regulatory shift in nearly two decades, bringing Dubai’s financial framework closer in line with the UK and EU standards. The changes are subject to further industry consultation and could take effect in 2026.

Dubai has witnessed a steady influx of hedge funds, solidifying its reputation as a key financial hub. Currently, more than 70 hedge funds operate within the DIFC, including Andurand Capital Management and Point72 Asset Management, with the majority managing over $1 billion in assets.

The DFSA emphasised that the proposed adjustments would maintain alignment with international best practices while creating a more attractive regulatory environment for fund managers.

The DFSA currently operates a four-tier licensing system, with the most notable changes proposed for Category 3 firms, which manage client assets.

Key proposals include lowering the baseline capital requirement to $140,000, from $230,000, following an initial reduction from $500,000 two years ago, and reducing minimum capital thresholds to $40,000 from $70,000 for locally domiciled, small-scale funds.

In addition teh DFSA is considering changes to wind-down capital rules witth Managers who do not hold client funds possible seeing the elimination of mandatory liquidation reserves. For those who do, required capital buffers may be reduced to 25% of annual fixed overhead costs, down from 35%.

Another potential, change would see Category 3 firms being required to hold reserves based on assets under management (AUM), client funds, and trading volume, while certain compliance and finance officers, as well as senior managers, may no longer require DFSA approval, shifting responsibility for vetting hires to firms themselves.

To support the growing hedge fund community, DIFC is developing additional office space, with a newly retrofitted building set to open by the end of April. The expansion reflects Dubai’s broader ambitions to attract startup hedge funds and global investment players.

Dubai is considering sweeping regulatory changes aimed at strengthening its position as a global hub for hedge funds, with the emirate’s financial watchdog reviewing key policies to reduce barriers for money managers, according to a report by Bloomberg.

The Dubai Financial Services Authority (DFSA) is undertaking a comprehensive review of existing regulations to streamline requirements and eliminate unnecessary regulatory burdens, a spokesperson for the agency confirmed. The DFSA oversees the Dubai International Financial Centre (DIFC), home to a growing number of hedge funds and investment firms.

Among the proposed changes is a reduction in minimum capital requirements for certain asset managers. The DFSA is also evaluating adjustments to liquidity requirements, including lowering the amount of emergency capital firms must hold and potentially removing the need for regulatory approval when hiring key personnel.

If implemented, these reforms would mark the most significant regulatory shift in nearly two decades, bringing Dubai’s financial framework closer in line with the UK and EU standards. The changes are subject to further industry consultation and could take effect in 2026.

Dubai has witnessed a steady influx of hedge funds, solidifying its reputation as a key financial hub. Currently, more than 70 hedge funds operate within the DIFC, including Andurand Capital Management and Point72 Asset Management, with the majority managing over $1 billion in assets.

The DFSA emphasised that the proposed adjustments would maintain alignment with international best practices while creating a more attractive regulatory environment for fund managers.

The DFSA currently operates a four-tier licensing system, with the most notable changes proposed for Category 3 firms, which manage client assets.

Key proposals include lowering the baseline capital requirement to $140,000, from $230,000, following an initial reduction from $500,000 two years ago, and reducing minimum capital thresholds to $40,000 from $70,000 for locally domiciled, small-scale funds.

In addition teh DFSA is considering changes to wind-down capital rules witth Managers who do not hold client funds possible seeing the elimination of mandatory liquidation reserves. For those who do, required capital buffers may be reduced to 25% of annual fixed overhead costs, down from 35%.

Another potential, change would see Category 3 firms being required to hold reserves based on assets under management (AUM), client funds, and trading volume, while certain compliance and finance officers, as well as senior managers, may no longer require DFSA approval, shifting responsibility for vetting hires to firms themselves.

To support the growing hedge fund community, DIFC is developing additional office space, with a newly retrofitted building set to open by the end of April. The expansion reflects Dubai’s broader ambitions to attract startup hedge funds and global investment players.

Hedge funds and asset managers have turned bearish on the US dollar for the first time since Donald Trump’s election victory last year, marking a significant shift in market sentiment, according to report by Business Times.

The report cites data from the Commodity Futures Trading Commission (CFTC) as showing that speculative traders held $932m in net short positions on the dollar as of 18 March – an abrupt reversal from mid-January, when they had amassed $34bn in long-dollar bets.

The shift reflects growing concerns over the impact of Trump’s economic policies, Federal Reserve rate expectations, and broader uncertainty surrounding the US economy. Market confidence in a stronger dollar at the start of 2025 has given way to apprehension over potential trade wars, public sector job cuts, and restrictive immigration policies.

At the start of the year, many hedge funds and investment strategists had forecast a strong dollar, expecting Trump’s policies and a limited number of Federal Reserve rate cuts to support the currency. However, growing concerns about economic fragility have reinforced expectations for at least three Fed rate reductions by early 2026. While the Bloomberg Dollar Spot Index saw a slight uptick last week, it remains on track for its worst monthly performance since late 2023.

Deutsche Bank strategists noted in a 19 March report that Trump’s trade policies, once viewed as a bullish catalyst for the dollar, are losing their perceived strength. Meanwhile, Credit Agricole revised its dollar forecast downward, citing the underestimation of how a US-led global trade war, public sector layoffs, and immigration restrictions would weigh on growth.

Hedge funds and asset managers have turned bearish on the US dollar for the first time since Donald Trump’s election victory last year, marking a significant shift in market sentiment, according to report by Business Times.

The report cites data from the Commodity Futures Trading Commission (CFTC) as showing that speculative traders held $932m in net short positions on the dollar as of 18 March – an abrupt reversal from mid-January, when they had amassed $34bn in long-dollar bets.

The shift reflects growing concerns over the impact of Trump’s economic policies, Federal Reserve rate expectations, and broader uncertainty surrounding the US economy. Market confidence in a stronger dollar at the start of 2025 has given way to apprehension over potential trade wars, public sector job cuts, and restrictive immigration policies.

At the start of the year, many hedge funds and investment strategists had forecast a strong dollar, expecting Trump’s policies and a limited number of Federal Reserve rate cuts to support the currency. However, growing concerns about economic fragility have reinforced expectations for at least three Fed rate reductions by early 2026. While the Bloomberg Dollar Spot Index saw a slight uptick last week, it remains on track for its worst monthly performance since late 2023.

Deutsche Bank strategists noted in a 19 March report that Trump’s trade policies, once viewed as a bullish catalyst for the dollar, are losing their perceived strength. Meanwhile, Credit Agricole revised its dollar forecast downward, citing the underestimation of how a US-led global trade war, public sector layoffs, and immigration restrictions would weigh on growth.

Hedge funds Balyasny Asset Management and Citadel have poached equity portfolio managers from each other, intensifying the battle for top trading talent as bonus season concludes and professionals seek new opportunities, according to a report by Reuters.

The report cites unnamed sources familiar with the matter as revealing that Balyasny has recruited David Brodsky, a healthcare-focused equity Portfolio Manager from Citadel’s Surveyor Capital unit. Brodsky, who has over two decades of experience, will join Balyasny in 2027 after serving a non-compete period.

Citadel has also hired Jeremy Simon, a former Balyasny Portfolio Manager who was part of its Anthem program, which grooms top-performing senior analysts for portfolio manager roles. Simon, who had been with Balyasny since January 2024, will join Citadel’s Ashler Capital division in 2026, focusing on technology, media, and telecommunications investments.

Moving in the opposite direction, biotech investor Isai Peimer, previously at Citadel’s Surveyor Capital, has already started as a Portfolio Manager at Balyasny following a year-long non-compete agreement.

Hedge funds Balyasny Asset Management and Citadel have poached equity portfolio managers from each other, intensifying the battle for top trading talent as bonus season concludes and professionals seek new opportunities, according to a report by Reuters.

The report cites unnamed sources familiar with the matter as revealing that Balyasny has recruited David Brodsky, a healthcare-focused equity Portfolio Manager from Citadel’s Surveyor Capital unit. Brodsky, who has over two decades of experience, will join Balyasny in 2027 after serving a non-compete period.

Citadel has also hired Jeremy Simon, a former Balyasny Portfolio Manager who was part of its Anthem program, which grooms top-performing senior analysts for portfolio manager roles. Simon, who had been with Balyasny since January 2024, will join Citadel’s Ashler Capital division in 2026, focusing on technology, media, and telecommunications investments.

Moving in the opposite direction, biotech investor Isai Peimer, previously at Citadel’s Surveyor Capital, has already started as a Portfolio Manager at Balyasny following a year-long non-compete agreement.

Hedge funds have ramped up bearish bets on US stocks at the fastest pace since 2020, reinforcing expectations of further market declines, according to a report by Reuters citing a client note from the prime brokerage division at Goldman Sachs.

Rather than pulling back entirely though, hedge funds increased short positions more aggressively than long ones in March, as the S&P 500 dropped nearly 5%. In contrast, global stocks excluding the US are on track for their strongest first-quarter performance since 2019, rising 8% so far.

Hedge funds executed their fastest equity sell-off in four years during the first week of March, dumping stocks over a 48-hour window as the S&P 500 fell 3.1%, marking its worst weekly performance in six months.

The Federal Reserve’s downward revision of US economic growth and increased inflation projections, coupled with uncertainty surrounding President Donald Trump’s trade tariffs, have further pressured market sentiment.

Hedge funds have notably cut exposure to tech and media stocks, bringing allocations to a five-year low. Some funds have initiated short positions on AI-related companies, while tech-focused hedge funds have posted negative 4.1% returns in March. Meanwhile, healthcare-focused funds are down 1.5%, according to Goldman Sachs.

The bearish stance on US equities is not mirrored in European and Asian markets, where hedge funds have exited losing trades without re-entering.

Despite broader market volatility, systematic hedge funds –which use algorithmic and quantitative strategies – have thrived, posting 8.9% gains year-to-date.

Meanwhile, global stock-picking funds have started to recover, gaining 1.5% in 2025 after suffering their worst two-week stretch since May 2022.

Hedge funds have ramped up bearish bets on US stocks at the fastest pace since 2020, reinforcing expectations of further market declines, according to a report by Reuters citing a client note from the prime brokerage division at Goldman Sachs.

Rather than pulling back entirely though, hedge funds increased short positions more aggressively than long ones in March, as the S&P 500 dropped nearly 5%. In contrast, global stocks excluding the US are on track for their strongest first-quarter performance since 2019, rising 8% so far.

Hedge funds executed their fastest equity sell-off in four years during the first week of March, dumping stocks over a 48-hour window as the S&P 500 fell 3.1%, marking its worst weekly performance in six months.

The Federal Reserve’s downward revision of US economic growth and increased inflation projections, coupled with uncertainty surrounding President Donald Trump’s trade tariffs, have further pressured market sentiment.

Hedge funds have notably cut exposure to tech and media stocks, bringing allocations to a five-year low. Some funds have initiated short positions on AI-related companies, while tech-focused hedge funds have posted negative 4.1% returns in March. Meanwhile, healthcare-focused funds are down 1.5%, according to Goldman Sachs.

The bearish stance on US equities is not mirrored in European and Asian markets, where hedge funds have exited losing trades without re-entering.

Despite broader market volatility, systematic hedge funds –which use algorithmic and quantitative strategies – have thrived, posting 8.9% gains year-to-date.

Meanwhile, global stock-picking funds have started to recover, gaining 1.5% in 2025 after suffering their worst two-week stretch since May 2022.

UK regulator the Financial Conduct Authority (FCA) has fined the London Metal Exchange (LME) £9.2m ($11.9) over its mishandling of the 2022 nickel crisis, marking the first-ever enforcement action against a UK exchange.

The ruling has reignited concerns within the hedge fund community about market transparency, risk controls, and regulatory oversight in commodity trading.

Hedge funds, including Elliott Associates, were among the hardest hit when the LME voided $12bn worth of trades on 8 March, 2022, following an unprecedented nickel price surge. The price of nickel soared past $100,000 per metric ton, doubling in just hours, forcing the exchange to cancel transactions and triggering lawsuits from financial firms claiming hundreds of millions in losses.

While the LME ultimately won the lawsuit, the case exposed significant shortcomings in market controls. Jennifer Han, Chief Legal Officer at the Managed Funds Association (MFA), warned that the lack of a robust regulatory response risks eroding investor confidence in UK markets.

For hedge funds specialising in commodity trading strategies, the FCA’s findings underscore systemic risks within the LME’s governance structure. The investigation found that only junior staff were monitoring trading during the early hours of 8 March, delaying escalation to senior management. Analysts say the absence of real-time oversight and poor market stress protocols exacerbated the crisis.

Despite the controversy, nickel trading volumes on the LME have rebounded to their highest levels since 2015, with many market participants resuming activity. However, concerns remain that hedge funds and other institutional investors could rethink their participation in LME markets if confidence in the exchange’s risk controls does not improve.

The LME has since implemented enhanced monitoring and risk protocols, acknowledging that over-the-counter (OTC) market activity played a significant role in the price spike.

UK regulator the Financial Conduct Authority (FCA) has fined the London Metal Exchange (LME) £9.2m ($11.9) over its mishandling of the 2022 nickel crisis, marking the first-ever enforcement action against a UK exchange.

The ruling has reignited concerns within the hedge fund community about market transparency, risk controls, and regulatory oversight in commodity trading.

Hedge funds, including Elliott Associates, were among the hardest hit when the LME voided $12bn worth of trades on 8 March, 2022, following an unprecedented nickel price surge. The price of nickel soared past $100,000 per metric ton, doubling in just hours, forcing the exchange to cancel transactions and triggering lawsuits from financial firms claiming hundreds of millions in losses.

While the LME ultimately won the lawsuit, the case exposed significant shortcomings in market controls. Jennifer Han, Chief Legal Officer at the Managed Funds Association (MFA), warned that the lack of a robust regulatory response risks eroding investor confidence in UK markets.

For hedge funds specialising in commodity trading strategies, the FCA’s findings underscore systemic risks within the LME’s governance structure. The investigation found that only junior staff were monitoring trading during the early hours of 8 March, delaying escalation to senior management. Analysts say the absence of real-time oversight and poor market stress protocols exacerbated the crisis.

Despite the controversy, nickel trading volumes on the LME have rebounded to their highest levels since 2015, with many market participants resuming activity. However, concerns remain that hedge funds and other institutional investors could rethink their participation in LME markets if confidence in the exchange’s risk controls does not improve.

The LME has since implemented enhanced monitoring and risk protocols, acknowledging that over-the-counter (OTC) market activity played a significant role in the price spike.