Comment on Policy change for trading in cash-settled commodities
commented on
24 Apr 2020, 08:55 PM
1. Primary reasoning is as per bye laws 2.3.65 page 12 mcx has to settle in cash , and cash settlement cannot be negative.
2. MCX own inbuilt system does not allow for negative pricing, so if system does not allow then how did they square off positions, mcx has done it just ad hoc without any proper systems, transparency and trackability.
4. After MCX realised their systems limitations, they have taken a knee jerk decision to now start trading hours till 11.30 and also they would modify the system to accept negative prices. Which clearly suggests they realised their mistakes and are trying to fix them now.
5. NYMEX whose reference MCX gives, had informed clients on 15 April 2020 regarding possibility of negative pricing, MCX never informed brokers or clients in India about the same,
“IF MCX” is taking NYMEX references they should have been aware of this and would have taken necessary steps to make investors aware but they did not, why didnt they changed the systems to accept negative prices?. Basically they themselves didnt know what to do, so like the typical indian mentality they are putting blame on some one else and who better than the normal retail customers who they know will not be able to fight them , and they can constantly give the same ghisa pita tape recorded ans “we took nymex rate , we took nymex rate”, They just dont have any answers to the above questions so the only thing they kept repeating nymex nymex nymex