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NSE to launch inaugural crude oil contract

Published by , Senior Editor
Hydrocarbon Engineering,

National Stock Exchange of India Ltd (NSE) has announced that it will launch its inaugural crude oil contract on 1 March, and has signed an agreement with ICIS to license its Brent-Forties-Oseberg-Ekofisk (BFOE) market data.

NSE has worked closely with ICIS to design a robust system that brings international best practice to help customers in India to access global crude markets. As part of the daily compilation of the index, NSE is licensing ICIS BFOE assessment data, which is produced five times a day in accordance with established ICIS methodologies.

The ICIS BFOE assessment data complies with the standards and principles set by the International Organization of Securities Commissions (IOSCO). ICIS BFOE data is audited annually; the most recent audit taking place in October 2018.

Vikram Limaye, MD and CEO, NSE said: “NSE is dedicated to deepen the Indian commodity markets by providing convenient and cost-effective onshore hedging products. India being the third largest consumer of crude oil in the world, after the US and China required an efficient hedging mechanism, this product will provide an opportunity to market participants for accessing the global crude oil markets and hedging their risk.’’

NSE shall launch two cash settled futures product – 100 bbls Brent Crude Oil Futures and 10 bbls Brent Crude Oil Mini Futures. The trading period for both these Futures will be between Monday to Friday and the trading session would be 9:00 am to 11:30 pm/11:55 pm IST (based on US daylight saving time period).

ICIS BFOE data is seen as global standard and is licensed by other international exchanges.

In the commodity derivatives segment, NSE earlier launched futures contracts in gold and silver. The exchange also received SEBI approval to launch futures contracts in copper.

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