NSE expands commodity derivatives offerings with 13 fresh contracts

NSE introduces new commodity derivatives: The National Stock Exchange (NSE) has broadened its commodity derivatives portfolio with the introduction of 13 new contracts, aiming to enhance risk management options for investors. With this expansion, NSE now offers a total of 28 products within the commodity derivatives segment, as outlined in a recent statement by the exchange.

The 13 new derivatives contracts encompass 'option on futures' for various commodities, including gold 1kg futures, gold mini futures, silver mini futures, copper futures, zinc futures, gold guinea (8 grams) futures, aluminium futures, aluminium mini futures, lead futures, lead mini futures, nickel futures, zinc futures, and zinc mini futures.

Sriram Krishnan, Chief Business Development Officer at NSE, highlighted the significance of this move, stating, "With the launch of 13 new products today, futures and options on all key products in energy, bullion, and base metals categories are available on the NSE platform. This will enable participants to efficiently manage their risk across commodities on the exchange platform."

In recent days, NSE has been proactive in introducing new derivatives contracts, including WTI crude oil, natural gas, and silver.

Surge in commodity derivatives popularity

The exchange already had commodity contracts covering a range of products, such as gold 1kg futures, gold mini futures, gold petal futures (1 gram), silver 30 kg futures, silver 30 kg option on goods, WTI crude oil futures, natural gas futures, brent crude oil futures, and copper futures.

Notably, NSE has witnessed a surge in interest from participants in its commodity derivatives segment, particularly with the introduction of new products like derivatives on WTI crude oil and natural gas. Diverse participants, including Foreign Portfolio Investors (FPIs) and domestic mutual funds, have shown active engagement in this segment.

To facilitate a seamless experience for trading members, NSE has established specialised teams, focusing on easy onboarding for new members, segmental enablement for existing trading members, and streamlined operational processes such as algorithmic trading approvals.

(With PTI inputs)