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    MCX starts mock trading to include zero, negative prices

    Synopsis

    The new trading software will go online from July 20, bringing the bourse at par with global exchanges, as CME Group has already adopted this standard in April, MCX said in a statement. There was a need for change in software after the crude oil prices on NYMEX, the platform owned by the CME Group, sunk to first zero and then in negative territory on expiry of the contract on April 19.

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    The final mock trading will be conducted on July 18, MCX said in a circular, adding it will inform market participants by a separate communication before going live with the new system from July 20.
    MUMBAI: Multi Commodity Exchange of India on Saturday launched mock trading on a new version of software to accommodate zero and negative prices of commodities derivatives contracts on its platform.

    The new trading software will go online from July 20, bringing the bourse at par with global exchanges, as CME Group has already adopted this standard in April, MCX said in a statement.

    There was a need for change in software after the crude oil prices on NYMEX, the platform owned by the CME Group, sunk to first zero and then in negative territory on expiry of the contract on April 19.

    This has severely hit Indian traders as they could not close their long (buying) positions due to COVID-19-led early closure of domestic markets at 1700 IST instead of normal closing of 23.30 IST, MCX said.

    Also, Indian trading softwares then was not enabled to accept negative prices of any commodities in absence of any such precedence in the world till then, it added.

    After complaints of Indian traders, Securities and Exchange Board of India had asked the bourse to enable trading systems to accept negative bid and ask quotes and allow trade at zero price of not only crude oil but other commodities as well, the exchange said.

    The final mock trading will be conducted on July 18, MCX said in a circular, adding it will inform market participants by a separate communication before going live with the new system from July 20.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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