Commodity Disruption Event



The London Metals Exchange (LME) suspended trading in nickel contracts on 8 March 2022. While the exchange reopened the nickel market on 16 March, the LME introduced new daily up and down price limits. Since reopening, and as of writing, the nickel market settled at these limits for 6 days. Finally, trading activity (measured by traded volumes) across the nickel curve has fallen significantly (<45% of the 2021 average) in the days immediately following the reopening.

In light of these market conditions, and in its capacity as Index Sponsor, Societe Generale as Index Sponsor has instructed the Calculation Agent of the below indices to consider the nickel market as being exceptionally affected by a Commodity Disruption, with effect starting on 31 March 2022. As such, and in line with the SGI Global Methodology, Societe Generale has also instructed the Calculation Agent of the below indices directly affected by the Commodity Disruption Event to suspend further rolls on nickel, and where applicable, rebalancings on nickel components.

Societe Generale has determined that the nickel market will need to settle unaffected by a price limit for 4 (four) consecutive days, and for the daily volume on the 3m forward LME contract (LMNIDS03 LME Comdty) to exceed 10,000 lots for each of those days prior to lifting the Commodity Disruption Event. Should these conditions fail to materialize by 18 April 2022, Societe Generale will host a new committee to reassess the situation. 

The indices directly affected by this Commodity Disruption Event include:

-              SGCOCOC2

-              SGCOCOC5

-              SGCOCOC7

-              SGCOCOEX

-              SGCOCOIM

-              SGCOA1CE

-              SGCOS14E

-              SGCORDNI

-              SGCORBDL

-              SGCORADL

-              SGCORBXL


The indices indirectly affected by this Commodity Disruption Event, include, amongst others:

-              SGICCODA

-              SGCODALS

-              SGCODALX

-              SGICODA6

-              SGICODAF

-              SGICODA5

-              SGCORBD

-              SGCORAD

-              SGCORBD5

-              SGCOS19E

-              SGCORBX