National Stock Exchange (NSE) will be launching options on WTI Crude oil and natural gas futures contracts in its commodity derivatives segment. However, the launch date hasn’t been announced yet and it is expected to be announced soon.
The necessary approvals from SEBI in this regard has been obtained.
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The exchange, in May, had launched the rupee denominated NYMEX WTI crude oil and natural gas futures contracts in its commodity derivatives segment.
According to NSE, it has witnessed a positive response from market participants in the WTI crude oil and natural gas futures contracts as more than 100 trading members across regions have transacted in these contracts since the launch, reported the Economic Times.
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“The addition of options on futures contracts will further boost NSE’s product offering in the overall commodity segment. These contracts are designed to provide the market participants, particularly corporates, value chain participants and foreign portfolio investors with a more efficient way to manage their commodity risk,” the exchange said in a statement.
“It gives us immense pleasure to inform the market participants that NSE is planning to launch options on NYMEX WTI crude oil and natural gas futures contracts in October. This is a significant step towards our aim of providing the market participants with a suite of dynamic and robust financial products,” said Sriram Krishnan, Chief Business Development Officer, NSE.
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“We would like to thank all the market participants for showing their trust and confidence in the NSE WTI crude oil and natural gas futures gas contracts and we are confident that the same will continue with the options on futures contracts as well,” Krishnan added.
As per trading volume, NSE is the world’s largest derivatives exchange, according to statistics maintained by Futures Industry Association for FY22. The exchange is ranked third in the world in the cash equities market by number of trades, the Economic Times report mentioned.
