As I understand, the LME nickel trade reversal was to prevent total meltdown due to multiple counterparties going bankrupt at the same time. To me, it was a classic case of exchange limits and poor risk control. "If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem. -J. Paul Getty (of course, add some zeroes for today's world)

Also, can you explain more about what this phrase means? "it's the Wild West compared to the US NMS" Are you saying the risk limits and controls on LME are much worse that US markets?