The Multi-Commodity Exchange Clearing Corporation Limited (MCXCCL) on February 09, 2026, issued a circular regarding the Alternate Risk Management Framework Applicable in case of near-zero and Negative Prices.
The following has been stated: -
•MCXCCL introduced an Alternate Risk Management Framework (ARMF) for Crude Oil and Natural Gas contracts in case of near-zero or negative prices, applicable for March 2026.
•ARMF may be triggered based on conditions like sharp price falls, international measures, or introduction of near-zero/negative strike options, with specified threshold prices.
•Once activated, absolute minimum margins, ELM floors, withdrawal of spread margin benefits, and the Bachelier option pricing model will apply.
•Additional margins (50%–125% of MTM) may be levied based on price declines, and MCXCCL may impose further margins depending on market movements.
The detailed circular is given in the document below.
[Circular No.: MCXCCL/RISK/029/2026]
