HKEX has disclosed via an official announcement that its wholly-owned subsidiary, the London Metal Exchange (LME), and LME Clear Limited have been included as defendants in a fresh legal action initiated by Elliott Associates, L.P. and Elliott International, L.P. (collectively referred to as "Elliott"), concerning nickel trading activities.

This new claim, designated as the 2026 Competition Appeal Tribunal Claim, was filed by Elliott on September 3, 2026, with the UK's Competition Appeal Tribunal. The action stems from Elliott's earlier challenge to the LME's decision to cancel all nickel contracts executed on or after midnight UK time on March 8, 2022, which had been the subject of the 2022 Judicial Review Claim.

As previously reported, the UK High Court ruled in favor of the LME and LME Clear in that original case on November 29, 2023, a decision that was subsequently upheld by the UK Court of Appeal on October 7, 2024. The UK Supreme Court later declined to hear Elliott's appeal against that appellate ruling, effectively concluding the 2022 Judicial Review Claim, as noted in HKEX's 2025 Interim Results report dated August 20, 2025.

In the current proceedings, HKEX states it has not yet been formally served with the claim documents. Elliott must first secure permission from the Tribunal before any such service can take place, and should that permission be granted, HKEX retains the right to contest the approval itself.

At its core, the 2026 Competition Appeal Tribunal Claim alleges that HKEX and the LME breached Chapter II of the UK Competition Act 1998, which prohibits abuse of a dominant market position. Specifically, Elliott contends that the defendants failed to implement adequate systems and controls to prevent disorderly trading during periods of significant market stress, and to effectively monitor and manage volatility in the LME nickel futures market. Additional allegations include failures to identify and manage conflicts of interest, as well as shortcomings in operating their arrangements and systems within a framework that is transparent, objective, non-discriminatory, and proportionate.

Should the Tribunal rule in Elliott's favor, any damages would be assessed by the Tribunal itself. HKEX has stated its belief that the 2026 Competition Appeal Tribunal Claim lacks legal merit and has indicated its intention to vigorously defend against the allegations. The announcement also notes that nothing within it constitutes, or should be interpreted as, an acceptance by HKEX of the Tribunal's jurisdiction.