NSE to launch its first agricultural commodity futures contract

-         Futures contract for Crude Degummed Soybean Oil (CDSO) will be launched on December 1st, 2020

November, 2020:National Stock Exchange of India Ltd (NSE), the leading stock exchange in India, will launch its first agricultural commodity futures contract for Crude Degummed Soybean Oil (CDSO) on December 1st, 2020.The contract is a monthly expiry cash settled futures contract with a trading lot size of 10 MT and price basis as Kandla.

India is the largest importer of edible oils in the world. This futures contract will provide the missing link in the Indian commodity derivatives ecosystem and will facilitate the Soybean Oils processing and allied industries in India and overseas, a perfect hedging tool for managing their price risk.  

The launch of its first agricultural commodity futures contract is yet another milestone in NSE's mission of bringing in market facilitating products and services which began more than 25 years ago. The introduction of agricultural commodities to our existing suite of products gives the broking community a complete NSE ADVANTAGE to trade and clear on a single platform.

Mr. Vikram Limaye, MD & CEO, NSE said “NSE is dedicated to deepen the Indian commodity markets by providing convenient and cost-effective onshore hedging products. India being one of the largest consumers of edible oils in the world, requires an efficient hedging mechanism for crude Soybean Oil as well. This product will work as a perfect price risk management tool for the market participants and the commodity ecosystem at large.”

The Solvent Extractors' Association of India (SEA) has congratulated the NSE on this occasion. Dr. B.V. Mehta, Executive Director of the SEA said, "Exchange traded derivatives contracts are a very useful tool that make price risk management convenient and easy for the industry. I am sure that our members will find these futures contracts useful in their day-to-day business purposes as well. More such futures contracts should be launched going ahead so that we can have a vibrant commodity markets ecosystem in India."

About National Stock Exchange of India Limited (NSE):

National Stock Exchange of India Ltd. (NSE) is the world’s largest derivatives exchange by trading volume as per the statistics published by Futures Industry Association (FIA) for 2019. NSE is also ranked 3rd in the world in the cash equities segment by number of trades as per the statistics published by the World Federation of Exchanges (WFE). NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully-integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members with the rules and regulations of the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE believes that the scale and breadth of its products and services, sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide high-quality data and services to market participants and clients.

For more information, please visit: www.nseindia.com