This comes after the exchange received approval to launch these contracts from market regulator Securities and Exchange Board of India (Sebi) in March.
The National Stock Exchange (NSE) on Monday introduced rupee-denominated futures contracts on underlying NYMEX WTI crude oil and natural gas to its commodity derivatives segment.
This comes after the exchange received approval to launch these contracts from market regulator Securities and Exchange Board of India (Sebi) in March.
The addition of these contracts has expanded NSE’s product offering in the energy basket as well as across the commodity segment. The launch of these contracts will provide market participants with effective trading and hedging opportunities as key energy products are available on a single trading platform.
“It is with great pleasure that we announce to market participants that NSE today launched NYMEX WTI crude oil and natural gas futures contracts,” said Sriram Krishnan, NSE’s Chief Business Development Officer.
“With NSE Clearing Ltd offering a settlement guarantee and easy collateral fungibility across all NSE market segments, we hope these two contracts will provide market participants with an efficient way to hedge their price risk and meet their trading objectives,” he added.
WTI is the underlying commodity of the New York Mercantile Exchange (NYMEX) oil futures contract. Additionally, crude oil derivatives (Brent and WTI) are the most commonly traded products in the commodity derivatives space.
All categories of foreign portfolio investors (FPIs) are eligible to trade, e.g. B. Individual, family office and corporate FPIs.
In February, NSE signed a data license agreement with the CME Group. The pact allowed the exchange to list, trade and settle rupee-denominated NYMEX WTI crude oil and natural gas derivative contracts on its platform.
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