The National Stock Exchange (NSE) has on Monday launched the rupee-denominated NYMEX WTI Crude Oil and Natural Gas futures contracts in its commodity derivatives segment, the stock exchange said. The announcement came after the final approval of the regulator Securities & Exchange Board of India (SEBI).
In February, NSE has signed a data licensing agreement with CME group allowing NSE to list, trade and settle rupee denominated NYMEX WTI Crude Oil and Natural Gas derivatives contracts on its platform.
The NYMEX WTI Crude Oil and Natural Gas contracts are among the world’s most traded commodity derivatives contracts generating interest from across the globe.
"This decision will expand 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 the market participants, with the availability of key energy products on a single trading platform," the stock exchange said.
"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. NSE has been the trusted exchange of market participants for close to three decades, due to its robust technology platform with high levels of safety and resilience for trading,” said Chief Development Officer of NSE Sriram Krishnan said.
"With NCL providing 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,” Krishnan added.
On Monday, the price of WTI Crude was trading at $70.32, while the Brent Crude was trading at $74.42 on New York Mercantile Exchange (NYMEX). On the other hand, Natural Gas was trading at $2.3 on NYMEX.