In its commodity derivatives division, the National Stock Exchange (NSE) introduced futures contracts in rupees on the underlying NYMEX WTI crude oil and natural gas. Following the exchange's receipt of the Securities and Exchange Board of India's (Sebi) approval to debut these contracts in March, this took place. These contracts have increased both the product selection for NSE's energy basket and its entire commodity segment. With the availability of essential energy products on a single trading
platform, the introduction of these contracts will offer market players efficient trading and hedging opportunities. According to Sriram Krishnan, chief business development officer of NSE, "We are extremely happy to inform the market participants that NSE has today launched the NYMEX WTI crude oil and natural gas futures contracts."
"We expect that these two contracts will give market players with an effective avenue to hedge their price risk and accomplish their trading objectives," he continued. "NSE Clearing Ltd. provides settlement assurance and ease of collateral fungibility across all NSE market segments.
The oil futures contract on the New York Mercantile Exchange (NYMEX) is based on the WTI commodity. Furthermore, the most traded goods in the field of commodity derivatives are derivatives of crude oil (Brent and WTI). All categories of Foreign Portfolio Investors (FPIs), including individual, family office, and corporate FPIs, are allowed to trade. NSE and CME Group had signed a data licencing deal in February. The agreement allows the exchange to list, trade, and settle natural gas and NYMEX WTI crude oil derivatives denominated in rupees.
