MCX asks software vendor to enable negative price trading after broker ire
Following the controversy over settling the April crude oil contract in the negative territory, India’s largest commodity derivatives exchange — the Multi Commodity Exchange (MCX) — has decided to enable its software for negative price trading, following the footsteps of the New York Mercantile Exchange (Nymex). The MCX earlier this week had restored all trading in non-agri commodities until 11.30 pm.
Talks are on with 63 Moons Technologies for upgrading the software, an MCX exchange official said, though the deadline for the upgrade is yet to be decided. Once the software is upgraded, India for the first time may see negative price quotations.
Nymex had the software to conduct negative trading, and a week before the May contract expiry, it enabled the software and alerted market participants about the same on April 15.
