MCX to levy 100% margin on crude oil

In an extremely cautious move, MCX has levied an initial margin of 100 per cent on all existing and yet-to-be-launched crude oil contracts from Thursday, due to increased volatility in prices.

Following the circular, investors will have to pay in full to open a position in crude oil futures, besides replenishing it with mark-to-market loss overnight from Thursday.

Upset over the exchange settling the last expired crude contract with negative prices for the first time in the history of commodity trading, some of the brokers have filed a case in the Mumbai and Delhi High Courts which has refused to give an interim relief even while accepting the petition for further hearing.