NSE to launch Dated Brent Crude Oil futures contracts from April 2026

The National Stock Exchange (NSE) will launch Dated Brent Crude Oil futures from April 13, 2026, post-SEBI approval. The cash-settled contracts aim to provide a hedging tool and enhance price discovery linked to global benchmarks.

The National Stock Exchange (NSE) has announced the introduction of Dated Brent Crude Oil (Platts) futures contracts in its commodity derivatives segment, following regulatory approval from SEBI.

The exchange stated that the new futures contracts will be available for trading with effect from April 13, 2026, as per the circular. The launch calendar indicates multiple monthly contracts extending up to 2027.

Contract Details and Trading Mechanism

The contract, based on the S&P Global Energy (Platts) Dated Brent assessment, will be traded under the symbol "BRCRUDEOIL."

Key Features and Price Limits

Key features of the new scheme include trading units of 100 barrels, with a maximum limit of 10,000 barrels. The base price limit shall be 6 per cent. In case the daily price limit of 6 per cent is breached, after a cooling-off period of 15 minutes, the limit will be relaxed up to 9 per cent.

"In case price movement in international markets is more than the maximum daily price limit (currently 9%), or if the international price is beyond the maximum daily price limit range (after appropriate currency conversion) when compared with the previous day's closing price on the domestic exchange, the same may be further relaxed in steps of 3% beyond the maximum permitted limit, by giving appropriate notice to the market," the circular noted.

Settlement Process

The contracts will be cash-settled, with the final settlement price determined based on the monthly simple average of Platts Dated Brent assessments in rupee terms.

The NSE circular states: "Final Settlement Price shall be the monthly simple average price, in Indian rupees, of the S&P Global Energy's (Platts) Dated Brent assessments (midpoint of the high and low) for the respective contract month. The monthly simple average RBI USD/INR reference rate of the respective contract month will be used for conversion. The price so arrived at will be rounded off to the nearest tick."

Objectives and Market Benefits

The move aims to expand the commodity derivatives product suite and provide market participants with an instrument linked to the globally benchmarked Platts Dated Brent assessment, which reflects international crude oil price trends. This is expected to enhance price discovery and offer a hedging mechanism aligned with global oil markets.

The introduction of these contracts is expected to provide Indian market participants with exposure to global crude benchmarks, improve hedging efficiency for refiners, importers, and institutional traders, strengthen price discovery in domestic commodity markets by linking them with international pricing, and increase liquidity and participation in the commodity derivatives segment.

The exchange added that detailed risk management, clearing, and settlement norms will be communicated separately by NSE Clearing Ltd. (ANI)

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