Mumbai Commodities Control - MCX has reduced the initial margins and Short Option Minimum Margins (SOMM) on crude oil contracts to 10 per cent and introduced staggered margin based on turnover with effect from Wednesday.
In December, the exchange halved the minimum initial margins and short option minimum margin to 50 per cent and withdrew additional margin on all crude oil futures and on the short side of options contracts.
In view of the volatility experienced in crude oil contracts in the past, MCX on Tuesday said it shall review the minimum initial margins and SOMM when the market-wide Open Interest of Crude Oil contracts reaches Rs 200 crore and thereafter in multiples of Rs 100 crore.
The minimum initial margins and SOMM shall be increased to 20 per cent when Open interest reaches Rs 200 crore and the date of implementation of these increased margins shall be informed by MCX, through a separate circular, it added.
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