The Multi Commodity Exchange Clearing Corporation Limited (MCXCCL), on January 07, 2026, notified regarding the Alternate Risk Management Framework Applicable in case of Near Zero and Negative Prices.
The following has been stated namely: -
• Commodities/Indices in which the Alternate Risk Management Framework (ARMF) in case of Near Zero and Negative Prices will be applicable:
• Crude Oil and Natural Gas.
• Pre-expiry margin on the above commodities shall be levied as per MCXCCL Circular no. MCXCCL/C&S/073/2021 dated March 23, 2021.
• Spread margin benefit: Margin benefit on spread positions shall be completely withdrawn.
• Option Pricing model: Bachelier Model based on price volatility shall be for used for Options pricing.
[Circular No. MCXCCL/RISK/003/2026]
