Derivatives segment ADTV falls in Nov, BSE gains F&O market share

The ADTV for NSE in the futures and options segment fell 2 per cent MoM to Rs 311.7 trillion, while that for the BSE rose 7.2 per cent to Rs 35.2 trillion

The average daily turnover (ADTV) for the derivatives segment fell for a second month in November even as the benchmark Nifty logged its best monthly advance since October 2022. Meanwhile, the combined cash market ADTV rose 5.2 per cent month-on-month (MoM) to Rs 75,913 crore.

After logging a record high of Rs 89,747 crore in September, cash market ADTV had slumped 20 per cent in October, amid a spike in volatility due to the selloff triggered by rising US bond yields. Industry players said while markets staged a sharp recovery in November a lot of investors remained on the sidelines for the better part of the month.

The ADTV for NSE in the futures and options (F&O) segment fell 2 per cent MoM to Rs 311.7 trillion, while that for the BSE rose 7.2 per cent to Rs 35.2 trillion.

BSE’s market share in the F&O segment for the first time topped 10 per cent. Its share in the cash segment stood at 7 per cent, down from a peak of 9.7 per cent in August 2022. Shares of BSE have been on a tear, more than quadrupling.

Until May 2023, BSE had almost zero per cent market share in the derivatives segment. However, after the relaunch of Sensex and Bankex derivatives contracts the bourse is proving to be a serious challenger to bigger rival NSE.

“Derivatives are now the largest revenue stream for exchanges (65 per cent for market leader NSE) driven by growing user base (10x in five years) and sachetization of products to lower ticket sizes. Continued growth in the equity investor base, higher share of derivatives users (currently about 10%) and new low-ticket products should keep derivatives growth (+30% FY24 YTD) in fast lane,” Jefferies said in a note last month.