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After April fiasco, MCX to allow negative price trading from July 27

The issue became sensitive after crude futures settled in the negative on April 20, causing huge losses to traders

Multi Commodity Exchange mcx
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The issue became sensitive after crude oil futures settled at a negative price on April 20, causing huge losses to many players

BS Reporter Mumbai
India's largest commodities exchange, MCX, has said in a circular that it will go live with new trading software that allows trading at negative prices.

The issue became sensitive after crude oil futures settled at a negative price on April 20, causing huge losses to many players. 

While that incident was a one-off, and there was no other case of negative price trading in any of the Indian bourses, none of the Indian bourses at that time was equipped with software to accommodate negative quotes. They could, at best, display a price of one rupee on their trading platforms. 

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First Published: Jul 19 2020 | 6:36 PM IST

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