NSE launches WTI crude oil and natural gas futures contracts

National Stock Exchange

The National Stock Exchange (NSE) 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 Securities and Exchange Board of India (Sebi) 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 the 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 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 Investors (FPIs) categories are permitted to trade such as individual, family office and corporate FPIs.

In February, NSE had signed a data licensing 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.