Brokers plan to sue MCX over negative price settlement of April crude

MCX said that it had settled the contract according to the formula in the contract, which has been followed for the last 15 years

With the MCX announcing a price of –Rs 2,884 (minus) as settlement of the April crude oil contract which expired yesterday, more than 100 brokers are estimated to have lost over Rs 450 crore. Hardly 12-15 brokers, most of whom are algo players, have got credit, according to reliable information.

In view of these developments, some brokers are considering to challenge the MCX settlement price decision in a court of law. Meanwhile, since these brokers have to pay the difference as the per final settlement price to the clearing corporation of the exchange, their margins lying as credit with the