NSE to launch WTI crude, natural gas futures

National Stock Exchange (NSE) in India is set to launch rupee-denominated Nymex WTI crude oil and Henry Hub natural gas futures contracts in its commodity derivatives segment.

The exchange has received approval from the Securities and Exchange Board of India (SEBI) and will announce the date of the launch soon.

NSE had earlier signed a data licensing agreement with US-based exchange CME, allowing the bourse to list, trade, and settle rupee-denominated Nymex WTI crude oil and Henry Hub natural gas derivative contracts on its platform. The specification of the products are likely to be released with the launch.

These contracts are designed to provide market participants with a more efficient way to manage their price risk.

The contracts are set to expand the bourse’s product offerings in the energy basket as it already has futures contracts for Brent crude oil, copper, gold, silver, and degummed soy oil.

But India’s Multi Commodity Exchange is the leading platform for oil, natural gas, bullion and metals trades, having the highest volumes. The National Commodity and Derivatives Exchange, on the other hand, has the leading market share in agricultural commodity trades in the country.