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LME to overhaul margin requirements in wake of nickel crisis

LME lays out two-year action plan aimed at strengthening the market

Exchange focuses on margins and liquidity in bid to restore confidence
Exchange focuses on margins and liquidity in bid to restore confidence Photo: Chris J. Ratcliffe/Getty Images

The London Metal Exchange is set to overhaul its margin requirements in the wake of the nickel crisis.

Alongside new rules on posting collateral, the exchange will also strengthen its liquidity monitoring rules and clearing house membership requirements as part of an action plan to stop another crisis after it was forced to cancel $4bn worth of metal trades last year.

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