The approval from the regulator allows NSE to list, trade rupee-denominated Nymex WTI crude oil and natural gas derivatives contracts for Indian market participants.
The addition of the contracts will also expand the NSE product offering in the energy basket and its overall commodity segment. Earlier, NSE had signed a data licensing agreement with CME Group for the launch of oil and natural gas derivatives on its platform.
“These contracts are designed to provide the market participants with a more efficient way to manage their price risk,” NSE said in a statement.
“It gives us immense pleasure to inform the market participants that NSE has received the regulatory approvals to launch the NYMEX WTI Crude Oil and Natural Gas futures contracts,” said Sriram Krishnan, Chief Business Development Officer.
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.
“It has always been our objective to provide the market participants with a suite of dynamic & robust financial products. We hope that it provides the market participants with an efficient avenue to hedge their price risk and meet their trading objectives. We will announce the launch date of these contracts soon,” Sriram Krishnan said.NSE started trading in derivatives with the launch of index futures in 2000 and later set up index options trading. Commodity derivatives segment of the exchange provides trading in futures. The current instruments that are available on bullion and energy futures. NSE is the world’s largest derivatives exchange by trading volume (contracts) as per Futures Industry Association (FIA) for 2022.
The exchange is ranked third in the world in the cash equities by number of trades for 2022, according to the World Federation of Exchanges
