NSE world's largest derivatives exchange for third straight year

The National Stock Exchange of India has emerged as the world's largest derivatives exchange for the third consecutive year in 2021 in terms of the number of contracts traded, according to the Futures Industry Association (FIA).

In addition, the exchange was ranked fourth by the number of trades in cash equities, as per the statistics maintained by the World Federation of Exchanges (WFE) for 2021.

In a statement on Wednesday NSE said it has ranked as the largest exchange globally in equity derivatives as well as currency derivatives by the number 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.

The year 2021 witnessed the total registered investor base on NSE surpassing the 5-crore mark to reach a count of 5.5 crore investors.

In the last 10 years, the equity derivatives daily average turnover increased by 4.2 times from Rs 33,305 crore in 2011 to Rs 1,41,267 crore in 2021. During the same period, the cash market daily average turnover surged by 6.2 times from Rs 11,187 crore in 2011 to Rs 69,644 crores in 2021.

In currency derivatives, the daily average turnover increased by 83 per cent from Rs 14,252 crore in 2011 to Rs 26,017 crore in 2021.

Academic research has shown that a well-functioning derivatives market can offer a variety of benefits, including improved liquidity and enhanced price discovery for the underlying assets, the exchange said.

NSE has recently announced the launch of derivatives on the Nifty Midcap Select index from January 24, 2022. The midcap segment has come into focus in the recent equity market rally with broad-based participation from all classes of investors, resulting in improved liquidity in these stocks.