JPMorgan Chase & Co. holds nickel contracts on the London Metal Exchange (LME) in warehouses in the Netherlands that are supposed to be bags of nickel but are stones.

The LME indicated last week that it found that 54 tons of nickel in a warehouse in the Netherlands did not meet LME standards. The bags, which were supposed to hold nickel and were worth about US$1.3 million, were filled with rocks.

There is no indication that JPMorgan has committed any violations or wrongdoing. The LME said it has worked with storage companies to study what went wrong.