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Brokerages discourage trading in crude oil till volatility subsides

MCX is considering interim measures to handle negative pricing on Nymex and the impact on its platform

oil, prices, crude
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The exchange has already asked its software vendor, 63 Moons Ltd, to enable the contract for negative price trading

Rajesh Bhayani Mumbai
Even as several leading commodity brokerages suspend or discourage trading in crude oil, the MCX is considering interim measures to handle negative pricing on Nymex and the impact on its platform. 

This comes in the aftermath of the crude oil contract crisis seen recently, when the Indian exchange had to settle the contract in a sharp negative or minus price. Trading halts when price hits a negative, unwinding all positions in such an eventuality. Triggering the circuit breaker is among the interim measures being considered by the exchange.

These interim measures are being discussed internally and later will be taken

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First Published: Apr 27 2020 | 7:25 PM IST

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