The Multi Commodity Exchange Clearing Corporation Limited (MCX) on March 10, 2025, 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 April 2025, 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 April 2025.
[Circular no. - MCX/MCXCCL/127/2025]
