Nickel as much as doubled on March 8 to more than US$100,000 per tonne, prompting the LME to suspend all nickel contracts and cancel trades made that day.

"It became clear that the nickel market had become disorderly," the LME said.

Nickel trading was then suspended for a week, something the LME acknowledged not all market participants agreed with.

Interim measures have included 15% upper and lower daily price limits for all of its physically delivered metals.

"Daily price limits have not historically been a feature of LME markets, and market participants have preferred not to have these types of controls in place," the LME said.

"However, the LME understands there is now broad support for retaining the daily price limits for the foreseeable future so as to provide clear known price boundaries for daily trading and minimise the potential for disorderly price moves."

The LME welcomed yesterday's announcement by the FCA and Bank of England of a review of the actions taken to determine what lessons might be learned.

The LME will appoint an independent party to conduct a "forensic" review of trading and position activity in the nickel market.

It said it had already identified sizable positions in the over-the-counter market and its lack of visibility of such activity as contributing to the issue.

Nickel closed yesterday at US$33,320 per tonne, or about $15 per pound.