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NSE expands commodity derivatives offering, boosts risk management

EditorAmbhini Aishwarya
Published 10/16/2023, 07:15 AM
© Reuters.
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The National Stock Exchange (NSE) has broadened its derivatives offering, introducing new options on futures for a range of commodities. As of Monday, investors can manage their exposure to price movements in gold, silver, copper, zinc, aluminium, lead, nickel, WTI crude oil, natural gas and additional derivatives. The move comes in response to heightened interest from a diverse set of market participants including Foreign Portfolio Investors (FPIs) and domestic mutual funds.

Sriram Krishnan, NSE's Chief Business Development Officer, observed an uptick in participation in the exchange's commodity derivatives segment from these entities. He highlighted particularly strong interest in WTI crude oil and natural gas derivatives. To cater to this growing demand, NSE has brought 13 new products to market spanning energy, bullion, and base metals categories.

The expansion aims to offer more avenues for investors to effectively manage their risk exposure in the commodity market. In support of this growth, NSE has established dedicated teams for seamless onboarding of new trading members and segmental enablement for existing ones. The exchange is also streamlining operational processes such as algorithmic trading approvals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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