NSE To Launch WTI Crude Oil, Natural Gas Futures Contracts From May 15

Last month, NSE got approval from SEBI to launch the rupee-denominated Nymex WTI crude oil and natural gas futures contracts in its commodity derivatives segment.

These contracts will broaden NSE's product selection across its entire commodities segment

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National Stock Exchange (NSE) on Friday announced that it would launch futures contracts on underlying WTI crude oil and natural gas in the commodity derivatives segment from May 15. Last month, the exchange got approval from SEBI to launch the rupee-denominated Nymex WTI crude oil and natural gas futures contracts in its commodity derivatives segment.

These contracts will broaden NSE's product selection across its entire commodities segment, including its energy basket. According to experts, these contracts would give market players a productive way to hedge their price risk, reported PTI. 

"Futures contracts on underlying WTI crude oil and natural gas (Henry Hub) would be available for trading in commodity derivatives segment with effect from May 15, 2023," NSE said in a circular.

NSE and CME Group signed a data licensing deal in February this year. The agreement enables the exchange to list, trade, and settle natural gas and WTI crude oil derivatives contracts on its platform in Rupees.

This comes after earlier this week, NSE launched a new index that will track the overall performances of listed real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). The weights of securities in the index will be determined by their free-float market capitalisation, with the exposure to a particular REIT or InvIT being capped at 33 per cent. Also, the aggregate weight of the top-three securities is capped at 72 per cent.

A real estate investment trust (REIT) or an infrastructure investment trust (InvIT) is an investment vehicle that owns revenue-generating real estate or infrastructure assets. REITs invest in real estate projects, whereas InvITs invest in infrastructure projects with a long gestation period. 

On Friday, Dalal Street traders remained closed for Dr Bhim Rao Ambedkar Jayanti. 

Key benchmark indices of the stock market closed higher for the ninth day in a row on Thrusday. NSE Nifty closed 15 points higher at 17,828 and touched seven-week high whereas BSE Sensex added 38 points and finished at 60,431 levels on Thursday.