Leading stock exchange NSE (National Stock Exchange) on Wednesday announced that it has signed a Data Licensing Agreement (DLA) with US-based CME Group, world’s largest financial derivatives exchange and trades in asset classes, for WTI crude oil and natural gas contracts.
As per the agreement, NSE will be allowed to list, trade and settle rupee denominated Nymex WTI crude oil and natural gas derivatives contracts for Indian market participants, the NSE said in an official statement.
The addition of Nymex WTI crude oil and natural gas (Henry Hub) contracts will expand the NSE product offering and its overall commodity segment.
NSE has applied to the Securities and Exchange Board of India (SEBI) seeking approval to launch the additional futures contracts, said one of the country’s leading stock exchange.
“On receiving approval from Sebi, NSE would make available trading in futures of these two global benchmarks, which will be settled in INR, on the NSE platform,” said Sriram Krishnan, Chief Business Development Officer, NSE said.
“The Nymex WTI Crude Oil and Natural Gas (Henry Hub) contracts are amongst the world’s most traded commodity derivatives contracts generating interest from across the globe,” Sriram Krishnan added.
This would help the exchange broaden its energy basket and these contracts will be beneficial for the Indian market participants to meet their price risk management activities as well as trading objectives, stated Krishnan in the statement.
