The sharp fall of WTI Crude prices into negative territory has created a major challenge for the MCX, India’s premier commodity futures exchange for trading in oil and energy products. MCX accounts for bulk of the oil futures trading in India. The MCX Clearing Corporation had earlier fixed the due date rate at Rs.1 on Monday against the lasts traded price of Rs.965. This would have resulted in a loss of approximately Rs.110 crore for long oil traders in totality. However, the set price had to be subsequently moved to (Rs.-2884) as the benchmark price on the NYMEX (which MCX uses as benchmark) closed the day at ($-37.6). This will now create an additional loss of Rs.332 crore collectively for the bulls as the total losses will now be Rs.442 crore as per the new benchmarking. While this may sound harsh to the bulls, it is positive for the bears. Had Indian markets remained open till 11 PM as was the practice, this should not have arisen. However, now due to COVID-19, exchanges are shut at 5 PM and that caused the issue. Now commodity brokers are worried that clients will not be willing to accept such a huge collective loss of Rs.442 crore and may eventually opt for the arbitration route. This would be time consuming for the brokers and also result in liquidity getting locked up for prolonged periods of time. The last word is yet to be said.