NSC inks pact to trade WTI crude oil and natural gas.
To begin trading Nymex WTI crude oil and natural gas, NSE on Wednesday signed a data licensing agreement with derivatives marketplace CME Group.
With this pact, National Stock Exchange (NSE) would be able to expand its NSE product offering and its overall commodity segment to list, trade, and, settle rupee-rupee-denominated WTI crude oil and natural gas derivatives contracts for Indian market participants.
To launch the additional features of the contract, NSE has applied to seek approval from the Securities and Exchange Board of India (SEBI).
After the SEBI approval, NSE could perform trading in futures of these two global benchmarks in Indian Rupees. The stock exchange also informed that the Nymex WTI Crude Oil and Natural Gas contracts come among the world's most traded commodity derivatives contracts seeking the attention of investors across the globe.
"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," Chief Business Development Officer, NSE, said.
The agreement will help NSE expand its trading impression by broadening its energy basket. Moreover, these contracts will benefit the Indian market participants to meet their price risk management activities. This will also help them in attaining their trading objectives.