BSE allows negative price level trading in commodity derivatives

Mumbai (Maharashtra), April 28 (ANI): Trading in commodity derivatives segment can be done at a negative price now, the Bombay Stock Exchange (BSE) said on Tuesday.

“The exchange’s BOLT Plus trading system has been modified to accept orders and execute trades at negative prices. Accordingly, existing versions of trading system APIs — ETI as well as IML APIs — will also support trading activity at negative price levels,” it said in a statement. To facilitate testing of this feature in the simulation (test) environment, the trading price range of Brent Crude Oil futures contracts will be suitably updated to accept orders at negative price levels and execute trades, said BSE.

Trading members and front-end trading application vendors will be able to place test orders and trade in these contracts at those price levels. “This will help members in checking the readiness of their internal systems and make suitable modifications if any required,” it said.

The features will be enabled in the simulation environment and made available to members and vendors to test from May 4 onwards, said BSE. The announcement comes after the crude oil derivatives contracts fell into negative in the global markets weeks ago.

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