Moscow exchange next week will launch a new version of the trading system with the possibility of negative prices on the futures market. In the first phase it will be available for futures on oil and natural gas. That is the situation with the execution of crude oil in April at negative cost led to millions of losses of private investors who have already sued the exchange, demanding the compensation of losses.Moscow exchange since 6 July launches a new version of the trading and clearing system of futures market with support for negative prices. As they say in the message exchange at the first stage functionality support negative prices will be available for two instruments: futures on natural gas (contract ID — NG) and futures for oil of mark Light Sweet Crude Oil (contract code — CL). In the future, “as necessary and the willingness of participants” plan to expand the list of tools, trades in which it can be held at negative prices. The exchange has informed “Kommersant” that it can be commodity contracts that are indicators of foreign exchanges, which has a negative price (e.g., Brent futures).The extension of the functions of the trading system became urgent after an unprecedented drop in April of quotations of delivery futures for oil of mark Light Sweet Crude Oil (WTI) on the stock exchange NYMEX (CME Group) to negative values. From may 26, the exchange holds test trades with negative prices on the test firing of the derivatives market.The exchange reported that margin is calculated in percentage of the nominal value of the contract, in case of negative prices will be charged a percentage of the value of the contract for the module. At the same time, he said, will be provided the minimum value of the bid guarantee for the contract.20 APR at 19:23 price traded on the Moscow exchange, the futures contract, Light Sweet Crude Oil with a performance April 21 fell to the lower border of the price corridor $of 8.84 per barrel. To conclude transactions below this price bidders could not, although at stock exchange NYMEX have continued bidding original contract. The next day the Moscow stock exchange has performed the contract at a price of minus $37,63 per barrel. Brokers estimated the losses of the owners of 1.5–1.7 billion rubles (see “Kommersant” on April 21). Individuals have already started filing class-action lawsuits to the Moscow stock exchange (see “Kommersant” on 5 June).The exchange has listened to the Committee on derivatives market and sold fairly quickly finalize the trading and clearing system, said the Director of Department of investment products and services “Opening Broker” Alexander Dubrov. “To trade, even during extreme price movements is better than a block trade and give traders the possibility of managing the risk while continuing trade with other p��osadkakh”,— he stressed. Head of Department “Internet-broker” “BCS” Igor Pimonov also notes that in conjunction with other solutions, in particular on the possible extension of the straps on the evening session in the contracts with the centre for liquidity in the Russian Federation, there shall be no repeat of the April situation. According to the representative of the exchange, this issue will be further discussed with the bidders. He noted that in accordance with the rules suspension of trading in futures contracts is possible.Polina Smorodskaya
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