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Negative Price Level Trading In Commodity Derivatives To Be Allowed

On April 28, 2020, the BSE said in the derivative segment in commodities trading can be done at negative price now on. In a press filing, the leading stock exchange of the country said, "...exchange's BOLT Plus trading system has been modified to accept orders and execute trades at negative prices. Accordingly, existing versions of trading system APIs - ETI as well as IML APIs will also support trading activity at negative price levels," BSE said in a press release.

Negative Price Level Trading In Commodity Derivatives To Be Allowed

And in the testing facility, the trading price in case of brent crude shall be suitably adjusted for accepting order at negative prices and execution of trades.

Further, the exchange in the simulation or testing environment the attribute shall be made available to trading application vendors as well as members from May 4, 2020.

This announcement comes after oil futures contract made a free fall to enter the negative territory.

on negative oil prices impact on consumers on negative oil prices impact on consumers

GoodReturns.in

Story first published: Tuesday, April 28, 2020, 16:15 [IST]
Read more about: bse commodity derivatives market

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