MCX system to allow negative price bids from July 27

Mumbai: The Multi Commodity Exchange of India (MCX), India’s largest commodity exchange, will go live with its new trading software, that accepts zero to negative bids, on July 27, 2020.

“The upgraded software version comes with the feature to accept negative bids. In order to familiarize traders and members with the working ofthe new software, MCX successfully conducted its mock trading sessions on July 11and July 18, 2020 without any adverse observation from members.”

The upgraded system follows the settlement of the generic crude contract at negative price months ago, which resulted in members long the commodity, taking the exchange to court. The matter is sub judice. Back then the system could take a Re 1 quote but not a zero to negative quote which was the case with Nymex, whose crude contract MCX crude takes cues from.

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Markets-Economic Times

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