New Delhi: The Securities and Exchange Board of India (SEBI) approved the National Stock Exchange (NSE) to launch rupee-denominated nymex WTI crude oil and natural gas (henry hub) futures contracts in its commodity derivatives segment.

It should be noted that these contracts are one of the most-traded commodity derivaties across the globe.

Earlier, NSE had signed a data licensing agreement with CME Group allowing NSE to list, trade and settle rupee-denominated NYMEX WTI Crude Oil and Natural Gas (Henry Hub) derivatives contracts on its platform.

The addition of these contracts will expand NSE’s product offering in the energy basket and its overall commodity segment.

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

“It gives us immense pleasure to inform the market participants that NSE has received the regulatory approvals to launch the NYMEX WTI Crude Oil and Natural Gas futures contracts. It has always been our objective to provide the market participants with a suite of dynamic & robust financial products,” said Sriram Krishnan, Chief Business Development Officer, NSE.

“We hope that it provides the market participants with an efficient avenue to hedge their price risk and meet their trading objectives. We will announce the launch date of these contracts soon.”

The 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 (FIN for the calendar year 2022).

NSE began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data.