Mumbai: The Bombay Stock Exchange (BSE) has announced significant changes to its West Texas Intermediate (WTI) Crude Oil derivatives contract specifications, aiming to provide greater trading flexibility, strengthen risk management capabilities and reduce transaction costs for market participants.
Announced on November 12, 2026, the revised framework will come into effect from November 27, 2026, for the December 2026 contract series and all subsequent monthly contracts.
The modifications include a simplified contract symbol, an improved options expiry structure, a wider range of available options strike prices and reduced exchange transaction charges. BSE has also announced a waiver of Authorised Person (AP) charges applicable to the contract.
Through these measures, the exchange aims to make its WTI Crude Oil derivatives segment more accessible and efficient for brokers, traders, hedgers, institutional participants and individual investors.
BSE Changes WTI Crude Oil Contract Specifications: Key Highlights
The revised framework introduces four major changes to the existing WTI Crude Oil derivatives contracts.
Contract Symbol Changed From WTICRUDE to CRUDEOIL
One of the key changes announced by BSE is the renaming of the existing contract symbol.
The current symbol, WTICRUDE, will be replaced with CRUDEOIL for both Futures and Options on Futures contracts.
The simplified naming convention is intended to make contract identification easier and more intuitive for market participants, improving operational convenience for trading members and investors.
Options Expiry Revised From Two Days to Five Business Days Before Futures Expiry
BSE has also revised the expiry structure of its WTI Crude Oil Options on Futures contracts.
Under the existing framework, options contracts expire two business days before the expiry of the underlying Futures contract. Under the revised specifications, the options expiry will take place five business days before the underlying Futures contract expires.
The change is intended to provide participants with additional time and flexibility to manage their positions, plan contract rollovers and execute trading and risk management strategies.
A wider gap between the expiry of options and the corresponding Futures contract is expected to offer greater operational flexibility to traders and hedgers.
Options Strike Range Expanded From 25-1-25 to 50-1-50
Another major enhancement concerns the availability of options strike prices.
BSE will significantly expand the existing options strike framework from 25-1-25 strikes to 50-1-50 strikes, covering In-the-Money (ITM), At-the-Money (ATM) and Out-of-the-Money (OTM) options.
This will increase the number of available strike prices, giving market participants a wider range of choices while constructing their trading and hedging strategies.
The expanded strike universe is expected to provide greater precision in executing options strategies across different market conditions.
It will also enable traders to explore more sophisticated positions and allow hedgers to select strike prices that better align with their exposure and risk management requirements.
Futures Expiry Cycle Remains Unchanged
While BSE has modified the options expiry structure, the expiry cycle of the WTI Crude Oil Futures contract will remain unchanged.
This will ensure continuity for existing Futures participants and allow them to continue operating within the familiar contract expiry framework.
For the December 2026 contract series, the revised expiry arrangement will be as follows:
- WTI Crude Oil Options expiry: December 11, 2026.
- Corresponding WTI Crude Oil Futures expiry: December 18, 2026.
The seven-calendar-day gap between the two dates reflects the revised arrangement of options expiring five business days before the underlying Futures contract.
BSE Reduces Transaction Charges on WTI Crude Oil Contracts
Alongside the changes in contract specifications, BSE has announced transaction cost benefits to encourage wider participation and support liquidity development in its WTI Crude Oil derivatives segment.
Under the revised cost structure, exchange transaction charges will be significantly reduced.
The charges will be:
- Futures contracts: Rs 2 per crore.
- Options contracts: Rs 10 per crore.
In addition to the reduced exchange transaction charges, BSE will also waive Authorised Person (AP) charges applicable to the WTI Crude Oil contract.
The measures are intended to lower the overall transaction costs for trading members and their clients, making participation in the commodity derivatives segment more economical.
The waiver of AP charges is particularly aimed at encouraging greater participation through the Authorised Person network, which facilitates market access for clients through trading members.
BSE expects these cost-related measures to support broader market access and contribute to the development of liquidity in WTI Crude Oil derivatives.
How the Revised WTI Crude Oil Contract Will Benefit Traders and Investors
The revised contract specifications bring together operational improvements, greater options flexibility and lower transaction costs.
The expanded strike range will give traders more choices while designing options strategies, while the revised expiry structure will provide additional time to manage positions and plan rollovers.
For hedgers, the wider availability of strike prices could offer more precise opportunities to manage exposure to international crude oil price movements.
Lower transaction charges and the waiver of Authorised Person charges are also expected to make the contract more attractive to brokers, proprietary trading firms, institutional participants and individual investors.
The changes are part of BSE’s broader efforts to encourage participation in India’s commodity derivatives market and strengthen the trading ecosystem through product innovation and improved market infrastructure.
What Is BSE’s WTI Crude Oil Derivatives Contract?
The BSE WTI Crude Oil derivatives contract is linked to the globally recognised West Texas Intermediate (WTI) Crude Oil benchmark traded on the Intercontinental Exchange (ICE).
The contract is cash-settled, meaning market participants can gain exposure to international crude oil price movements without having to undertake physical delivery of crude oil.
This allows traders and investors to participate in crude oil price movements through the exchange-traded derivatives market.
Crude oil is an important commodity in global financial markets, and its price movements influence several sectors, including energy, transportation, manufacturing and other industries.
With global commodity markets playing an increasingly important role in portfolio management and risk mitigation, BSE’s revised contract framework aims to provide participants with more flexibility in executing trading and hedging strategies.
The enhancements are expected to improve the overall accessibility and efficiency of the WTI Crude Oil derivatives contract.
BSE’s Push to Strengthen India’s Commodity Derivatives Market
Through the latest changes, BSE aims to create a more participant-friendly environment in its commodity derivatives segment.
The combination of a wider options strike universe, improved expiry flexibility and reduced transaction costs is expected to encourage participation from a broader range of market participants.
The exchange is looking to attract brokers, proprietary trading firms, hedgers, institutional participants and individual investors while supporting deeper liquidity in the commodity derivatives market.
BSE stated that it remains committed to expanding market access, strengthening India’s commodity derivatives ecosystem and providing world-class trading infrastructure through continuous innovation and market-focused product enhancements.
About BSE
Established in 1875, BSE is Asia‘s oldest stock exchange and is among the world’s largest exchanges in terms of the number of listed companies.
The exchange has played a prominent role in the development of India’s capital market by providing companies with an efficient platform for raising capital.
Its benchmark index, the BSE Sensex, is tracked by investors across the world and is widely regarded as an indicator of the performance and growth of the Indian economy.
BSE provides trading facilities across a wide range of financial instruments, including equity and debt, index and single-stock derivatives, currency derivatives, interest rate derivatives, commodity derivatives and Electronic Gold Receipts (EGR). It also facilitates the distribution of mutual funds.
In addition to its trading platforms, BSE provides financial data and information through its Data Products division, offering real-time, Tick-by-Tick (TBT), end-of-day (EOD) and historical marketplace data.
