Following a landmark decision by the Financial Conduct Authority (FCA) to fine the London Metal Exchange (LME) £9.2 million for serious operational failings, compliance expert Vivek Dodd, CEO of compliance training provider Skillcast, has urged regulated markets across the UK to treat this as a wake-up call - not to become complacent about the critical importance of robust training and operational preparedness.

Commenting on the story, Vivek Dodd, CEO at Skillcast said: 

“This is the FCA’s first-ever fine issued to a major investment exchange, and the largest financial penalty it has handed out so far this year. It’s a clear message that firms must ensure their teams are equipped to handle high-pressure, high-stakes situations.

“The crisis unfolded as nickel prices surged past $100,000 per tonne in the wake of Russia’s invasion of Ukraine. With only relatively junior staff on duty, who lacked the training to recognise or respond to anything beyond rogue algorithms or simple errors, LME suspended trading for eight days and controversially cancelled thousands of trades.

“The FCA’s notice specifically pointed to insufficient staff training as a root cause, and when critical decisions fall to unprepared teams, the consequences can ripple across global markets.

“Importantly, the FCA reduced the fine by 30% in recognition of LME’s cooperation during the investigation, which highlights the tangible benefits of transparency and proactive engagement with regulators.

“At the heart of compliance is people. This incident shows what can happen when frontline teams aren’t properly trained or empowered to carry out their responsibilities. But it also underscores that cooperation with regulators can go a long way in mitigating outcomes when issues arise.

“As markets become more complex and unpredictable, firms must invest in continuous, scenario-based compliance training and foster a culture of preparedness at every level of the organisation.”