(Bloomberg) -- Britannia Global Markets Ltd will step down as a clearing member of the London Metal Exchange later this month, becoming the first dealer to withdraw from the bourse in the wake of an historic short squeeze in the nickel market.

London-based Britannia will resign its membership on June 20, and will focus on providing clients with over-the-counter exposure to metals markets, it said in an emailed statement. The company is also looking to form partnerships with other LME brokers to provide ongoing access to the exchange, it said.

The LME and its brokers were thrown into turmoil as nickel prices surged during an unprecedented short squeeze in March, leaving dealers facing huge margin calls against loss-making client positions. The exchange responded to the price spike by halting trades and canceling $3.9 billion worth of transactions, in a move designed to rescue brokers that might have struggled to cover further losses. 

The exchange is now facing lawsuits from investors who stood to gain from the volatility, while UK regulators carry out a rare probe into the LME’s handling of the crisis. JPMorgan Chase & Co. and Tower Research Capital LLC are reviewing their activity in metals in the wake of the turmoil, while several hedge funds have vowed not to trade on the bourse.

Britannia remains committed to the metals trading business despite its decision to withdraw its membership, Britannia Financial Group Chief Executive Officer Mark Bruce said in the company’s statement.

“The current market uncertainty following the well-publicized recent events, coupled with a clear hesitancy of some participants to support the existing LME market structure has led to a change in our strategic approach,” he said. 

Britannia Global Markets was known as Berkeley Futures until 2019, when it was acquired by Britannia Financial Group Ltd. The group is controlled by Venezuelan-Italian banker Julio Herrera and also has offices in Geneva and the Bahamas.

A spokeswoman for the LME wasn’t immediately able to comment outside of normal working hours.

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