Moscow Exchange refused to review the losses of many traders
The Moscow Exchange refused to recalculate the multimillion-dollar losses of traders, who traded May futures for WTI crude oil. According to the press service of the organization, this would mean a change in the already concluded contracts, and would also entail losses to other participants.
The press service said that many traders are confident in the correctness of the company’s actions. If the Moscow Exchange had not stopped trading when the indicators reached negative values, the losses of many participants would have been more significant.
The National Association of Stock Market Participants applied to the Moscow Stock Exchange with a request to restructure the multi-million dollar losses of traders. This is indicated in an official letter to Yuriy Denisov, chairman of the board of the exchange. The letter notes that the incident is an unprecedented case, and therefore it is necessary to take into account the unavailability of systems to work in such conditions. Representatives of the National Association of Stock Market Participants are confident that if the exchange had not closed the trades, losses could have been avoided.
Sergei Romanchuk, head of Metallinvestbank’s dealing center, is confident that Moscow Exchange is right. He noted that even if the price band increased, the cost of the original contracts was already very low. In these cases, single transactions were carried out, however, the arbitrageurs were limited in their capabilities, and it is difficult to do anything under these conditions.
On April 20, futures for the delivery of WTI crude oil in May reached negative values and amounted to -$ 40 per barrel. As a result, the exchange systems stopped accepting incoming applications, and at two in the morning the trades were closed. According to representatives of the exchange, brokerage clearing systems are not designed for trades with negative values.
As a result, many traders suffered multimillion-dollar losses, and the law firm Milton Legal announced plans to file a lawsuit against the Moscow Exchange as a defendant and the Central Bank as a regulator.