NCDEX, the leading commodities and derivatives exchange, has introduced India’s first International Brent Crude Oil and Light Sweet Crude Oil futures contracts. These contracts were available for trading from Friday i.e. June 20, 2014.
The contract integrates international price discovery markets with the Indian futures market and eliminates any currency distortion to provide a very simple and perfect hedge option to domestic companies and value chain participants. Since contract prices will be in tandem with international prices, the final settlement price will be simple and transparent.
Some of the key features of newly launched contract are - Accurate reflection of International Prices; Final Settlement Price anchored to the Crude contracts of ICE, one of the largest exchanges globally in the energy space; Free of currency movement and Final Settlement Price to be based on the Currency exchange price at launch etc.