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Regulator sounds alarm on commodity markets as LME outlines reform

LME’s nickel crisis a ‘wake up call’ as commodity volatility continues

‘Very volatile commodity prices may give rise to financial strains,’ as the LME reels from a March spike in nickel prices
‘Very volatile commodity prices may give rise to financial strains,’ as the LME reels from a March spike in nickel prices Photo: Christian Sinibaldi for Financial News

Another regulator said volatile commodities markets were a cause for concern, as bearish sentiment becomes more entrenched in the financial system.

Commodity market volatility could have a “disproportionately large macroeconomic impact” and spill over to the broader financial markets, said Klaas Knot, chair of the Financial Stability Board and president of the Netherlands’ Central Bank.

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