- This came after the exchange received approval from the markets regulator Securities and Exchange Board of India (Sebi) to launch these contracts
- Starting October 9, 2023, the exchange will introduce options contracts for November, December, and January with respect to WTI crude oil, alongside November and December contracts for natural gas
- Trading hours for these contracts will span Monday through Friday, from 9 am to 11.30 pm or 11.55 pm, depending on US daylight saving time
NE BUSINESS BUREAU
AHMEDABAD, OCT 6
The National Stock Exchange (NSE) on Friday announced that it will launch options linked to NYMEX WTI Crude Oil and Natural Gas futures contracts in its commodity derivatives segment. Originally slated for October 16, 2023, this launch has now been preponed and will now take place on Monday, October 9, 2023.
WTI serves as the fundamental commodity for the New York Mercantile Exchange’s (NYMEX) oil futures contract, and it’s worth noting that crude oil derivatives, both Brent and WTI, are among the most actively traded products within the commodity derivatives arena.
Starting October 9, 2023, the exchange will introduce options contracts for November, December, and January with respect to WTI crude oil, alongside November and December contracts for natural gas. Trading hours for these contracts will span Monday through Friday, from 9 am to 11.30 pm or 11.55 pm, depending on US daylight saving time.
Individual clients seeking to participate in WTI contracts will face a maximum allowable open position of 9,60,000 barrels or 5 per cent of the market-wide open position, whichever is greater. For collective positions managed by a member on behalf of all clients, the limit stands at 96,00,000 barrels or 20 per cent of the market-wide open position.
In the case of natural gas, individual clients will have a limit of 120,00,000 MMBtu or 5 per cent of the market-wide open position. Similarly, for collective positions handled by a member on behalf of all clients, the limit is 12,00,00,000 MMBtu or 20 percent of the market-wide open position.
This came after the exchange received approval from the markets regulator Securities and Exchange Board of India (Sebi) to launch these contracts.
The addition of options on futures contracts will further boost NSE’s product offering in the overall commodity segment. These contracts are designed to provide the market participants with a more efficient way to manage their commodity risk, the exchange said in a release.
“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.
“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,” NSE Associate Vice President Khushal Shah said.
In May, NSE launched the rupee-denominated NYMEX WTI Crude Oil and Natural Gas futures contracts in its commodity derivatives segment.
The exchange 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.
WTI is the underlying commodity of the New York Mercantile Exchange’s (NYMEX) oil futures contracts.
