BSE launches F&O on futures contracts in commodity derivatives

BSE on Tuesday announced that it has launched futures and options (F&O) on futures contracts in its commodity derivatives segment spread across precious metals, base metals and energy.

The bourse said it aims to provide a diverse set of product offerings to investors to efficiently hedge for a varied class of market participants.

“BSE has introduced an array of products within its futures and options segment, bolstering its commitment to providing investors with a broader spectrum of investment tools and strategies,” the stock exchange said in a statement.

Presently in ‘futures’, the BSE offers WTI crude oil, Brent crude oil, gold, gold mini, silver, silver mini, silver kg, almond, steel, copper, aluminium, and zinc in commodity derivatives segment.

In ‘options on futures’, the bourse offers Brent crude oil, gold, silver, and WTI crude oil. 

“These contracts are designed to provide market participants with added flexibility and risk management capabilities,” said the bourse.

According to the BSE statement, currently it has 160 active members and an additional 110 members are in the process of getting onboarded which is a testament to the exchange's growing appeal and commitment to meeting the evolving needs of the market participants.

“These commodity contracts will provide market participants (particularly corporates, value chain participants and foreign portfolio investors) an efficient way to manage their commodity price risk against volatility,” the BSE had said earlier.

BSE (formerly Bombay Stock Exchange) is Asia’s oldest and the world’s fastest Stock Exchange with a speed of 6 microseconds. The stock exchange will celebrate its 150th year anniversary on July 2024.

BSE provides market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.

The country's largest stock exchange NSE had said that it has received Sebi's approval for launching ‘options contracts’ on underlying WTI crude oil and natural gas futures.