Login ID:
Partner Login
Contact Us : 7066511911

MCX Enables Technology To Facilitate Negative/Minus Pricing; Adaptation May take Time

25 May 2020 9:35 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

After last month’s controversial settlement of crude oil contract at a negative price or price quoted in minus, MCX has issued a circular saying that it has now enabled its software-system to quote and trade at negative (minus) price or price below rupee one.

MCX issued circular said, “the revised version of MCX Application Programming Interface (API) to accept negative price in the system. The API has been shared with empanelled vendors and members developing software in-house.”

Now several trading software which brokers are using will have to be updated and tested.

After all trading software are approved mock trading will be done and then trading can happen in negative price. These are front-end software like ODIN or many others.

On April 20, MCX settled crude oil futures Rs 2,884 minus even as their software was not permitting negative price trade. This was because the contract term was to settle it at Nymex crude oil close on the MCX settlement day and Nymex crude which trade in WTI based shale crude oil close minus -$37 per barrel.

After negative price settlement in April, several investors incurred huge losses and large brokerages discontinued trading in crude oil while some increased margins significantly higher for crude oil futures trading. The controversy became bigger and brokers went to high court against the settlement.

Although the cases in the various courts have not been resolved yet, MCX enabled their software to trade negative price. Actual implementation could take longer.

(Commodities Control Bureau)

  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  

Top | Post Comment  

Latest Market Commentary
Sugar (LIFFE) Counter-trend Pullback Underway / Next ...
Sugar (ICE) A Breakout Beyond $12.30 May Confirm Uptr...
ICE Raw Sugar Ends Lower on Demand Concerns, Adequate S...
India Contracts Deal to Export 5.2 Mn T Sugar; Likely t...
Centre Set to Announce Rise in Sugar MSP
Top 5 News
Moong Drops At Pipariya Amid Thin Mills Buying, Regular...
Chana Trade Mixed At Selective Spot Markets
NAFED's Push For Tenders Halts Uptrend In Indore Pulse ...
Tur Firm At Mah/Kar/Chhattisgarh; Dips In M.P Amid Aver...
Red Chilli Prices Steady in Guntur
Top 5 Special Reports
USD/INR (Jul 20) Bearish Breakout from a Descending ...
CBoT Soybean Reaches 4-Months High on Dry, Hot U.S. Wea...
Weekly: Masoor Falls On Overseas Supply, Chana Dips As ...
Copyright © CC Commodity Info Services LLP. All rights reserved.