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BSE allows trading commodity derivatives in negative after oil price collapse

city New Delhi Usa India covid-19 testing pandemic information
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NEW DELHI: BSE Ltd has made changes in its system to allow trading in commodity derivatives at negative prices following the collapse of US crude oil futures last week.

The Indian exchange’s BOLT Plus trading system has been modified to accept orders and execute trades at negative prices, the BSE said.

The May contract of WTI crude had closed at minus $37.63 on 20 April as lockdowns following the covid-19 pandemic have brought economic activities worldwide to a near standstill, crushing demand for the commodity.

The BSE, in a circular, said trading members and front-end trading application vendors will be able to place test orders and trade in these contracts at those price levels.

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