Multi Commodity Exchange (MCX), the country's largest commodity derivatives exchange, will launch options trading in Crude oil (100 barrels) futures with effect from May 15. The exchange has received market regulator Securities and Exchange Board of India (SEBI) approval for the launch last week.
Two crude oil options contracts expiring on June 15, 2018 and July 17, 2018 will be available for trading on the day of the launch. The lot size of the option contract is same as the underlying crude oil futures contract (i.e. 100 barrels).
The option contract will provide the physical market participants an excellent product to trade and meet their hedging requirements alongside the existing futures contracts.