NCDEX may rope in RIL, IOC for crude trading

National Commodity and Derivatives Exchange (NCDEX) is planning to rope in oil companies like Indian Oil Corporation (IOC) and Reliance Industries (RIL) to boost the trading of Brent crude futures.

"We are in discussions with public sector companies including IOC and BPCL and private firms like Reliance and Essar for crude futures trading," a senior NCDEX official said.

The official said no big oil company has joined the bourse as broking and clearing member so far. Participation of these companies was essential to increase trading volumes on the bourse, he added.

In volume terms, Brent crude trading currently ranges between 30,000- 50,000 barrels per day (bpd) while turnover was in the range of Rs 15-18 crore, he said. However, almost the entire volume is speculative trading, he added.

NCDEX has signed a deal with US-based InterContinental Exchange (ICE) Futures, and offers trading in rupee terms. Its rival, Multi Commodity Exchange (MCX), has tied up with NYMEX for crude futures trading.