LONDON (Reuters] – The London Metal Exchange (LME), a hedge fund association, has complained about March’s suspension and cancellation of nickel trading. They claim that LME did not meet its regulatory obligations.

On March 8, the LME’s benchmark nickel rose to record levels of above $100,000 per tonne in disorderly trading, based on China’s Tsingshan holding Group expectations that others will have to purchase back short positions.

The Managed Funds Association, (MFA), stated that the LME had undermined investor confidence by not performing its regulatory obligations to keep markets orderly, manage conflict of interests and protect nickel investors.

The LME should be encouraged to swiftly address regulatory deficiencies because they are an important source of liquidity for the metal market.

LME didn’t immediately reply to our request for comment.

In April, UK financial regulators launched an investigation into the circumstances surrounding the suspension of nickel trading by the LME. This was followed by angry protests from the market participants, and a damage to the reputation of the exchange.

Jane Street Global Trading and Elliott Associates, a U.S. hedge funds are sueing the LME for $15.3 million each for cancelling nickel trades.

LME also has its own review underway, aiming at identifying actions that can be taken to minimize the likelihood of disorderly markets in the future.

“We are not satisfied with the proposed scope of independent review” stated the MFA. The MFA represents 150 businesses that together control nearly $2.6 trillion.

Sources in the metal industry have pointed out the possible conflict of interests with LME having its clearinghouse.

The exchange is yet to announce when or how the review will begin.