There was a need for change in software after the crude oil prices on NYMEX, the platform owned by the CME Group, sunk to first zero and then in negative territory on expiry of the contract on April 19.
This has severely hit Indian traders as they could not close their long (buying) positions due to COVID-19-led early closure of domestic markets at 1700 IST instead of normal closing of 23.30 IST, MCX said.
Also, Indian trading softwares then was not enabled to accept negative prices of any commodities in absence of any such precedence in the world till then, it added.
After complaints of Indian traders, Securities and Exchange Board of India had asked the bourse to enable trading systems to accept negative bid and ask quotes and allow trade at zero price of not only crude oil but other commodities as well, the exchange said.
The final mock trading will be conducted on July 18, MCX said in a circular, adding it will inform market participants by a separate communication before going live with the new system from July 20.
Source: ET Markets