LONDON, Dec 14 (Reuters) - The London Metal Exchange (LME) has launched a consultation about when volatile prices should force a suspension of trading, it said on Thursday.

The proposal is part of sweeping reforms the exchange has launched following a crisis in nickel trading in March 2022, during which prices nearly doubled within hours, forcing a suspension of trading and voiding of deals.

"The LME is consulting on the introduction of the following framework for determining when a market for a metal shall be automatically suspended," the LME said in a notice.

The exchange, the world's oldest and largest market for industrial metals, said a suspension would be triggered if prices hit daily limits for three successive business sessions when closing prices are being determined.

On the next business day, the market would be closed from midnight London time until the LME lifts the suspension, it added.

The LME, which is owned by Hong Kong Exchanges and Clearing Ltd., said the consultation would close on Jan. 31.

The consultation will also propose changes to the LME rulebook in other areas, including investigations, enforcement and discipline, it added. (Reporting by Eric Onstad; editing by Mark Heinrich, Kirsten Donovan)