The Multi Commodity Exchange Clearing Corporation Limited (MCX) on December 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 January 2025, below which the ARMF shall be triggered:
o Crude oil & Crude oil Mini - 1300/-
o Natural Gas & Natural Gas Mini - 80/-
• It states the floor value for the minimum initial margins for January 2025 has been set at ₹240,400 for Crude Oil, ₹24,040 for Crude Oil Mini, ₹111,400 for Natural Gas, and ₹22,280 for Natural Gas Mini per lot.
• It further states that the additional margins based on price movement range from 50% to 125% of MTM for commodity price drops of 50% to over 90%.
This circular shall be applicable for January 2025.
Refer to the attached document for detailed notification.
[Circular no. - MCX/MCXCCL/807/2024]
