In the fourth quarter of 2023, the volume of nickel futures traded on the London Metal Exchange (LME) increased by 43% year-on-year to 3.1 million lots. Average daily volumes in November and December increased by 59% and 55% year-on-year, demonstrating a significant recovery in market trading and boosting LME-wide volumes. This increase shows that, despite the impact of the nickel incident, market activity and trader confidence on the LME are gradually returning.

Matthew Chamberlain, chief executive of the LME, said that after winning the case brought by fund managers over the nickel incident, the exchange will continue to implement market reforms and other measures to put the impact of the incident behind it. This statement conveys the LME's determination to restore market confidence and rebuild the image of the industry.

In addition to nickel futures, the volume of other metals contracts such as zinc and tin on the LME has also increased significantly. This shows that the market's interest in these metals is increasing, and it also reflects investors' optimistic expectations for the global economic recovery and metal demand growth.

Looking ahead, with the gradual recovery of the global economy and continued growth in metal demand, the LME metal futures market is expected to remain active. Exchanges still need to take effective measures to strengthen market supervision and ensure fair and transparent trading to further consolidate market confidence.

The significant growth in the trading volume of LME nickel futures and the apparent recovery of the market have brought new opportunities and challenges for the exchange. Exchanges need to continue to deepen reform and strengthen risk management to adapt to the rapid development and changes in the market.