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NSE launches inaugural crude oil contract in commodity segment

01 Mar 2019 Evaluate

National Stock Exchange of India (NSE) has launched its inaugural crude oil contract on March 01, 2019, and signed an agreement with ICIS, a leading global market information provider for the energy and petrochemical markets, to license its BFOE (Brent-Forties-Oseberg-Ekofisk) market data. In the commodity derivatives segment, NSE has earlier launched futures contracts in gold and silver. The exchange also received SEBI approval to launch futures contracts in copper.

NSE launched two cash settled futures product - 100 barrel Brent Crude Oil Futures and 10 barrels 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). The initial margin on this contract would be Minimum 4 % or based on SPAN whichever is higher.

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

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