Liquidity Scheme Targets

MCX

Dominance

The National Stock Exchange (NSE) is preparing to roll out a liquidity enhancement scheme (LeS) for its newly launched Dated Brent Crude Oil (Platts) futures within the next 2–3 weeks. The move is aimed at building liquidity in a segment currently dominated by the

, which commands over 99% market share in commodity derivatives. NSE’s strategy is to introduce differentiated products and incentivize brokerages to provide two-way quotes, thereby attracting participation from scratch. Strategic Context Launch: NSE introduced Brent futures on 13 April 2026. Market-making: Sebi rules allow exchanges to incentivize brokerages to provide two-way quotes for new contracts. Differentiation: NSE aims to offer unique products compared to MCX, which already offers WTI crude futures linked to NYMEX benchmarks. Commentary: Anand Rathi’s Naveen Mathur called the LeS “a good move,” noting Brent’s global importance and hedging utility once liquidity builds. MCX Dominance Commodity derivatives turnover (FY25–26 through Feb): ₹149.21 trillion (notional). Options premium turnover: ₹13.99 trillion. Segments: Energy and bullion remain the most liquid. History: MCX launched its commodity derivatives platform in November 2003 and has since maintained leadership. Implications NSE’s LeS could help attract initial liquidity in Brent futures, a globally traded benchmark commodity. Market-making incentives may encourage brokerages to participate actively, narrowing spreads and boosting volumes. Competition between NSE and MCX could intensify, especially in energy contracts where hedging demand is strong. Conclusion NSE’s planned liquidity scheme for Brent futures marks a strategic push into commodity derivatives, challenging MCX’s dominance. If successful, it could broaden India’s energy hedging ecosystem and offer participants direct access to Brent-linked risk management.