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NSE launches WTI Crude Oil and Natural Gas derivatives contracts

NSE

The National Stock Exchange (NSE) announced on Monday the debut of rupee-denominated NYMEX WTI Crude Oil and Natural Gas futures contracts in its commodity derivatives sector. The news came after the Securities and Exchange Board of India (SEBI) gave its final permission.

The NSE struck a data licencing agreement with CME Group in February, allowing it to list, trade, and settle NYMEX WTI Crude Oil and Natural Gas futures contracts in rupees on its platform.

NSE

The NYMEX WTI Crude Oil and Natural Gas contracts are among the most traded commodities derivatives contracts in the world, attracting traders from all over the world.

“This decision will broaden NSE’s product offering in both the energy basket and the overall commodity segment.” With the availability of essential energy products on a single trading platform, the launch of these contracts will give market participants with effective trading and hedging opportunities,” the stock exchange stated.

“We are delighted to inform market participants that the NSE has launched the NYMEX WTI Crude Oil and Natural Gas futures contracts today.” Because of its solid technology platform with high levels of safety and resilience for trading, NSE has been the trusted exchange of market players for nearly three decades,” stated NSE Chief Development Officer Sriram Krishnan.

“With NCL offering resolution guarantee and ease of collateral fungibility across all NSE market segments, we hope that these two contracts will provide traders with an efficient avenue to hedge their price risk and meet their trading objectives,” Krishnan said.

On the New York Mercantile Exchange (NYMEX), the price of WTI Crude was $70.32, while Brent Crude was $74.42. On the other side, natural gas was trading at $2.3 on the NYMEX.

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