The Multi Commodity Exchange Clearing Corporation Limited (MCX) on November 08, 2024, issued the notification regarding the Alternate Risk Management Framework Applicable in case of Near Zero and Negative Prices.
The following has been stated namely: -
• The below mentioned commodities/Indices are identified as susceptible to the possibility of near zero and negative prices:
o Crude Oil
o Natural Gas
• Conditions in which the ARMF will be triggered: -
o Triggers indicating the likelihood of near zero/negative prices
o Threshold price for identified commodities/Indices for the month of December 2024 below which the ARMF will be triggered has been stated.
The provisions shall be applicable for the month December 2024
[Notification No. MCX/MCXCCL/744/2024]
