The National Stock Exchange (NSE) announced on Friday that it will introduce futures contracts on the underlying WTI crude oil and natural gas in the commodity derivatives segment starting May 15. This comes after the exchange last month received approval from market regulator Sebi to introduce rupee-denominated Nymex WTI crude oil and natural gas futures contracts in its commodity derivatives segment.
These agreements will expand NSE’s product offerings in the energy basket and across the commodity segment.
Experts believe that these contracts would provide market participants with an efficient way to hedge their price risk.
“Futures contracts on underlying WTI crude oil and natural gas (Henry Hub) would be available for trading in the Commodity Derivatives segment effective May 15, 2023,” NSE said in a circular. In February, NSE signed a data license agreement with CME Group. The pact allows the exchange to list, trade and settle rupee-denominated WTI crude oil and natural gas derivative contracts on its platform.
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