OTC nickel contracts stuck despite trading resumption
Contracts still unable to settle using new prices, but Isda template may solve the issue
While nickel futures trading has resumed on the London Metal Exchange (LME), contractual problems have meant holders of over-the-counter derivatives contracts linked to the metal are still unable to settle trades that expired during the market shutdown.
The International Swaps and Derivatives Association is working on a bilateral template that would allow counterparties to use the new prices to settle the trades. But, in the meantime, the contracts remain stuck unless they are dealt with
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