The National Stock Exchange on Monday launched rupee-denominated futures contracts on underlying NYMEX WTI crude oil and natural gas in its commodity derivatives segment.
This came after the exchange, in March, received approval from markets regulator the Securities and Exchange Board of India to launch these contracts.
The addition of these contracts has expanded NSE's product offering in the energy basket as well as its overall commodity segment. The launch of these contracts will provide effective trading and hedging opportunities to market participants, with the availability of key energy products on a single trading platform.
"It gives us immense pleasure to inform the market participants that NSE has launched the NYMEX WTI crude oil and natural gas futures contracts today", Sriram Krishnan, Chief Business Development Officer, NSE, said.
"With NSE Clearing Ltd. providing a settlement guarantee and ease of collateral fungibility across all NSE market segments, we hope that these two contracts will provide market participants with an efficient avenue to hedge their price risk and meet their trading objectives", he added.
WTI is the underlying commodity of the New York Mercantile Exchange's (NYMEX) oil futures contract. Further, crude oil derivatives (Brent and WTI) are the most traded products in the commodity derivative space.
All foreign portfolio investor (FPI) categories are permitted to trade, such as individual, family office, and corporate FPIs.
In February, NSE signed a data licencing agreement with CME Group. The pact allowed the bourse to list, trade, and settle rupee-denominated NYMEX WTI crude oil and natural gas derivatives contracts on its platform.
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