Infusion of Derivative Contracts

Who infuses the first derivative contracts in the market in the first place?

Hey @siddharthpaikray,

Check out this page on the NSE website to know the selection criteria.

NSE uses various selection criteria like -

  • average daily market capitalization
  • average daily traded value
  • the market wide position limit in the security
  • the quarter sigma values
  • the Average daily deliverable value

SEBI approval is also necessary. Check out the above link for more info.

Check out this post to know how strike intervals are decided for Options -

The exchange introduces the derivative contract based on their selection criteria. Once it’s been introduced on the exchange, institutional and retail participants will buy/sell it.