The National Stock Exchange (NSE) is set to introduce options on NYMEX WTI Crude Oil and Natural Gas futures contracts in its commodity derivatives segment starting Monday, October 9, 2023. This move comes after receiving approval from the Securities and Exchange Board of India (Sebi), allowing the launch to occur a week earlier than the initially planned date of October 16.
This expansion will enhance NSE's commodities offerings, providing market participants with a more efficient way to manage commodity risk. The introduction of these options is an addition to the already existing futures contracts that are denominated in rupees for these commodities on NSE.
The rupee-denominated futures contracts have seen a positive response since their launch, with over 100 trading members participating. These new options will further broaden the range of products available for traders and investors.
WTI serves as the underlying commodity for NYMEX's oil futures contract and crude oil derivatives, including Brent and WTI, hold the position as the most traded products in this sector. The introduction of these options by NSE is expected to add depth and liquidity to this highly traded and vital market segment.
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