NSE to launch options on WTI crude oil futures and natural gas futures contracts

The inclusion of options on futures contracts will enhance the NSE's range of products within the broader commodity sector

The National Stock Exchange (NSE), India's leading and globally the largest derivatives exchange, has received approval from the Securities & Exchange Board of India (SEBI) to launch options (on futures) on NYMEX WTI Crude Oil and Natural Gas futures contracts in its commodity derivatives segment.

Earlier, NSE introduced rupee-denominated futures contracts for NYMEX WTI Crude Oil and Natural Gas within its commodity derivatives segment on May 15, 2023. The NSE has observed a favourable reception among market participants for these WTI Crude Oil and Natural Gas futures contracts, with over 100 trading members from various regions engaging in transactions since their launch.

The inclusion of options on futures contracts will enhance the NSE's range of products within the broader commodity sector. These contracts have been crafted to offer market participants, notably corporations, players along the value chain, and foreign portfolio investors (encompassing all categories of FPIs such as individuals, corporations, and family offices), a more effective means of mitigating their exposure to commodity risk.

 Shri Sriram Krishnan, Chief Business Development Officer, NSE said, "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 2023. This is a significant step towards our aim of providing the market participants with a suite of dynamic & robust financial products. We will announce the launch date of these contracts soon.

We would like to thank all the market participants for showing their trust & confidence in the NSE WTI Crude Oil and Natural Gas Futures contracts, and we are confident that the same will continue with the Options on Futures contracts as well.”

National Stock Exchange of India (NSE) is the world’s largest derivatives exchange by trading volume (contracts) as per the statistics maintained by Futures Industry Association (FIA) for calendar year 2022. NSE is ranked 3rd in the world in the cash equities by number of trades as per the statistics maintained by the World Federation of Exchanges (WFE) for calendar year 2022.