NSE World’s Largest Derivatives Exchange for Third Straight Year

According to the Futures Industry Association (FIA), the National Stock Exchange of India has surpassed the New York Stock Exchange as the world’s largest derivatives exchange for the third year in a row in terms of the number of contracts traded in 2021. In addition, according to the World Federation of Exchanges (WFE) figures for 2021, the exchange placed fourth in terms of cash equities trading.

According to a statement released on Wednesday, the NSE is the largest exchange in the world for equities derivatives and currency derivatives, based on the volume of contracts traded.

“It is a matter of great pride for us and our country that NSE has emerged as a global leader and achieved the distinction of being the largest derivatives exchange in the world for the 3rd consecutive year and the 4th largest exchange in cash equities by the number of trades,” Vikram Limaye, MD & CEO, NSE, said.

In the year 2021, the total number of registered investors on the NSE surpassed the 5-crore (50 million) milestone, reaching 5.5 crore (5.5 million). The daily average turnover of equity futures has surged by 4.2 times in the recent decade, from Rs 33,305 crore (US$ 4.47 billion) in 2011 to Rs 1,41,267 crore (US$ 18.98 billion) in 2021. The daily average turnover of the cash market increased by 6.2 times within the same period, from Rs 11,187 crore (US$ 1.50 billion) in 2011 to Rs 69,644 crores (US$ 9.3 billion) in 2021.

The daily average turnover in currency derivatives surged by 83% from Rs 14,252 crore (US$ 1.91 billion) in 2011 to Rs 26,017 crore (US$ 3.49 billion) in 2021.

According to the exchange, academic research has demonstrated that a well-functioning derivatives market can provide a number of advantages, including greater liquidity and improved price discovery for the underlying assets.

The NSE recently announced that derivatives on the Nifty Midcap Select index will be available beginning January 24, 2022. With broad participation from all classes of investors in the current equity market rise, the midcap segment has come into focus, resulting in greater liquidity in these companies.