MCX said it will go live with new software that allows trading at negative prices. The decision follows the chaos witnessed after oil futures at one point in trade were dragged to the negative territory on April 20.
This was a one-off incidence and no similar instance of negative price trading was seen on any of the other bourses. But the problem that surfaced was none of the Indian bourses was technically equipped to take those negative quotes into account.
After the fiasco, first the BSE commodity segment made adjustments for negative trading and now MCX will allow it from July 27, 2020. "The upgraded software version comes with a feature to accept negative bids. In order to familiarise traders and members with the working of the new software, MCX conducted mock trading sessions on July 11 and July 18, without any adverse observation from members", said the MCX.