NSE the world’s largest derivatives exchange for the fourth consecutive year in 2022

According to the Futures Industry Association (FIA), the National Stock Exchange of India (NSE) will once again become the largest derivatives exchange in the world by 2022 as measured by the number of contracts traded.

This is the fourth consecutive year that the exchange earned the top spot, the NSE said in a statement on Sunday.

In addition, the exchange ranked third in the equity segment by number of transactions (electronic order book) in 2022, an advance from the previous year when it ranked fourth, according to statistics maintained by the World Federation of Exchanges (WFE).

In the calendar year, the benchmark stock index, the Nifty 50, hit a moving high of 18,887.60. Furthermore, there was a significant strengthening of liquidity in several product categories, including equities, equity derivatives and currency derivatives.

In the equity segment, the daily average turnover of exchange-traded funds (ETFs) was Rs 470 crore in CY 2022, up 51 percent year-on-year (YoY).

The daily average turnover of Sovereign Gold Bond in the secondary market was Rs 7 crore in CY 2022, up 59 percent year-on-year.

Government securities, which have been made available in NSE’s equity segment, are also experiencing significant growth, albeit at a lower level, with volumes reaching a daily average turnover of Rs 3 crore last month.

“Achieving third place in the equity segment and the largest derivatives exchange is the result of the collective effort of all stakeholders,” said Sriram Krishnan, Head of Business Development, NSE.

NSE said it expects to soon begin using the Social Stock Exchange as a segment subject to regulatory approvals.

This would enable ‘social enterprises’, especially non-profit organizations, to present their work to a wider audience and mobilize funds through the issuance of tools, such as Zero Coupon Zero Principal Bonds, and bring efficiency and transparency to the overall ecosystem.

In terms of derivatives, NSE said it is working on new products in currencies, an interest rate segment and the commodity derivatives segment, and will announce the launch soon. This is subject to regulatory approvals.

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