ISITC’s Workaround for SWIFT & Negative Trading Prices

By Eugene Grygo
June 9, 2020
FTF News

The Derivatives Working Group of ISITC, a securities industry standards group, is helping to spotlight a problem that has gotten lost in the shuffle of a pandemic and sudden recession. Essentially, how do users of the SWIFT financial messaging network process negative trading prices on commodity futures?

“The effort was spurred by recent market event disruptions caused by the COVID-19 pandemic, headlined by the West Texas Intermediate (WTI) oil benchmark, which traded and settled in negative territory for the first time ever,” according to the working group.

“After the events of April 20, the Settlements and Derivatives working groups quickly organized around a market practice update as an interim solution,” says Brian Manning, co-chair of ISITC Derivatives Working Group, in a prepared statement.

Read more on ISITC’s market practice update in Eugene’s article in FTF News.