The Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) on August 05, 2026, issued a circular regarding Alternate Risk Management Framework Applicable in case of Near Zero and Negative Prices.
The following has been stated: -
•Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) issued Circular No. MCXCCL/RISK/169/2026 outlining the Alternate Risk Management Framework (ARMF) for near-zero and negative prices applicable during September 2026.
•The ARMF framework specifically targets Crude Oil (including Mini) and Natural Gas (including Mini) contracts.
•Specific threshold prices will trigger the framework (e.g., ₹1,851.00 for Crude Oil and ₹158.50 for Natural Gas), setting absolute floor values for minimum initial margins and Extreme Loss Margins (ELM).
•When triggered, spread margin benefits are withdrawn, options are priced using the Bachelier Model, and additional margins up to 125% of MTM are levied depending on price drops beyond 50%.
[Circular No. MCXCCL/RISK/169/2026]
