The National Stock Exchange (NSE) is poised to introduce options on NYMEX WTI Crude Oil and Natural Gas futures contracts within its commodity derivatives segment, beginning on Monday, October 9, 2023. This development comes after receiving approval from the Securities and Exchange Board of India (SEBI), allowing for an earlier launch date than initially planned, which was October 16.
This expansion marks a significant enhancement to NSE’s commodities offerings, offering market participants a more efficient means of managing commodity risk. The newly introduced options will complement the existing futures contracts for these commodities, which are denominated in rupees and already available on NSE.
Since their launch, rupee-denominated futures contracts have received a positive response, with participation from over 100 trading members. The introduction of options on NYMEX WTI Crude Oil and Natural Gas futures contracts will further diversify the range of products available to traders and investors.
NYMEX WTI Crude Oil serves as the underlying commodity for NYMEX’s oil futures contract, and derivatives linked to crude oil, including Brent and WTI, are among the most traded products in this sector. NSE’s introduction of these options is expected to bring increased depth and liquidity to this highly traded and essential market segment.
