Sriram Krishnan, Chief Business Development Officer, NSE said, “We have received this feedback from market participants that it would be a good idea to launch a dated Brent crude oil contract, because this is the contract that closely works with these spot market prices.”
In the current environment, where frequent developments continue to influence Brent crude spot prices, this contract is expected to be particularly useful for market participants.
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Brent crude oil is the most widely tracked benchmark globally, including among Indian market participants. In India, traders typically follow a basket index where Brent accounts for about 25%, with the rest comprising Dubai and Oman crude. Given its relevance, introducing a Brent-linked product was an important addition to the overall offering.
The exchange is building on its earlier success in energy derivatives, including WTI crude and natural gas. Strong growth in trading volumes—particularly in WTI contracts—highlights increasing traction among traders. NSE now appears focused on expanding its energy basket further, ensuring it caters to both domestic and global pricing benchmarks.
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Beyond energy, NSE is also seeing encouraging traction in its gold contracts. The recently introduced 10-gram gold contract, coupled with doorstep delivery at a nominal cost, is aimed at retail investors. The model allows investors to take delivery of physical gold through the exchange mechanism, offering both convenience and trust. The upcoming expiry of this contract is expected to be a key milestone in assessing its success.
Another major initiative in the pipeline is the launch of Electronic Gold Receipts (EGRs). This product could potentially unlock idle gold held in households by allowing investors to convert physical gold into tradable digital instruments.
The exchange believes this could deepen market participation while giving investors more flexibility in managing their assets. Krishnan noted, “This is going to be a game changing product again.”
