The Multi Commodity Exchange Clearing Corporation Limited (MCX) on October 09, 2024, notified regarding the Alternate Risk Management Framework Applicable in case of Near Zero and Negative Prices.
The following has been stated namely: -
• It states the threshold price per unit for identified commodities/Indices for November 2024, below which the ARMF shall be triggered:
o Crude oil & Crude oil Mini - 1300/-
o Natural Gas & Natural Gas Mini - 80/-
• It states that if the price of the commodity/Index falls between 50% to 75%, then an additional margin of 50% of the MTM shall be levied.
• It states that if the price of the commodity/Index falls between 75% to 90%, then an additional margin of 100% of the MTM shall be levied.
• It states that if the price of the commodity/Index falls beyond 90%, then an additional margin of 125% of the MTM shall be levied.
This circular shall be applicable for November 2024.
Refer to the attached document for detailed notification.
[Circular no. - MCX/MCXCCL/681/2024]
