NSE is now world’s largest derivatives exchange

India Now Has World’s Largest Derivatives Exchange by Volume
Abhishek Vishnoi and Ashutosh Joshi|21 January 2020

India’s National Stock Exchange has surpassed America’s CME Group Inc. to become the world’s largest derivatives bourse by volume.
Mumbai-based NSE traded the most contracts in the world last year, the exchange said in a statement, citing data from the Futures Industry Association. Volume on the Indian exchange grew 58% to about 6 billion derivative contracts in 2019, surpassing CME’s 4.83 billion, according to FIA’s website.
NSE added that the growth in volumes has come on the back of new investor registrations and as derivatives to cash market turnover ratio has consistently remained around 3 times. India’s stock market value of $2.2 trillion pales in comparison with the U.S.’s $35.5 trillion. “It is a nice milestone but it also shows that the speculative activity is increasing in India and the cash market is not performing,” said Deven Choksey, who oversees investment and research at K.R. Choksey Shares and Securities Pvt. The next big milestone for NSE will come when there is more delivery-based settlement in derivatives, he added.

View Details

India Now Has World’s Largest Derivatives Exchange by Volume
Abhishek Vishnoi & Ashutosh Joshi| January 22, 2020

India’s National Stock Exchange has surpassed America’s CME Group Inc. to become the world’s largest derivatives bourse by volume. Mumbai-based NSE traded the most contracts in the world last year, the exchange said in a statement, citing data from the Futures Industry Association. Volume on the Indian exchange grew 58% to about 6 billion derivative contracts in 2019, surpassing CME’s 4.83 billion, according to FIA’s website.
NSE added that the growth in volumes has come on the back of new investor registrations and as derivatives to cash market turnover ratio has consistently remained around 3 times. India’s stock market value of $2.2 trillion pales in comparison with the U.S.’s $35.5 trillion.
“It is a nice milestone but it also shows that the speculative activity is increasing in India and the cash market is not performing,” said Deven Choksey, who oversees investment and research at K.R. Choksey Shares and Securities Pvt. The next big milestone for NSE will come when there is more delivery-based settlement in derivatives, he added.
The NSE won the crown for derivatives volumes in a year that marked the end of a feud with the Singapore Exchange Ltd. over the latter’s plans to introduce single-stock futures based on some of India’s largest companies.
That dispute ended in August last year after the two countries approved the creation of a stock-trading link in Indian Prime Minister Narendra Modi’s home state of Gujarat.
SGX-Nifty daily futures trading of about $1.8 billion is likely to shift to the Gujarat International Finance Tec-City -- or the Gift City -- once the link is ready, Vikram Limaye, chief executive officer of the NSE, said last year

View Details

NSE emerges as world's largest derivatives exchange in 2019
Besides, the National Stock Exchange (NSE) said it has been ranked third in the world in the cash equities segment by number of trades as per the statistics published by the World Federation of Exchanges (WFE).
PTI|21 January 2020

The NSE on Tuesday said it has emerged as the world's largest derivatives exchange in 2019 by number of contracts traded surpassing the CME Group based on the statistics published by derivatives trade body Futures Industry Association (FIA).
Besides, the National Stock Exchange (NSE) said it has been ranked third in the world in the cash equities segment by number of trades as per the statistics published by the World Federation of Exchanges (WFE).
"...Our achievements have been made possible by supportive government and regulatory policies, state of the art technology infrastructure, a robust risk management framework and broad based trust and participation by the entire spectrum of global and domestic investors," NSE MD and CEO Vikram Limaye said in a statement.
He further said market development is critical for financing the growth of India and for achieving the aspiration of becoming a USD 5 trillion economy by 2024-25. Robust capital markets are not only critical for financing the country's growth potential but also for creating employment opportunities for youth.
Over the last five years, the NSE said its cash equities segment has grown by more than 90 per cent from a daily average turnover of about Rs 17,572 crore in 2014-15 to about Rs 34,264 crore in 2018-19. During the same period, equity derivatives daily average turnover has increased 70 per cent from Rs 52,371 crore to Rs 88,772 crore.

Growth in volumes of both cash equities and derivatives is on the back of deepening of equity markets in India, the exchange noted.
The NSE said it has witnessed more than 1.2 crore new investor registrations in the cash equities segment in last 5 years out which close to 87 lakh registrations were in last 3 years. It is also observed that a third of the new investors have come from tier 3 and tier 4 cities and towns.
"Another heartening feature is adoption of digital tools by investors with about 26 per cent of total trading activity in the cash equities segment coming through mobile and internet trading," the exchange said.

View Details