India’s NSE world’s largest derivatives exchange

The National Stock Exchange in India’s finance capital, Mumbai

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.

In the year 2021, the total number of registered investors on the NSE surpassed the 50 million milestone, reaching 55 million. The daily average turnover of equity futures has surged by 4.2 times in the recent decade, from US$ 4.47 billion in 2011 to US$ 18.98 billion in 2021. The daily average turnover of the cash market increased by 6.2 times within the same period, from US$ 1.50 billion in 2011 to US$ 9.3 billion in 2021.

The daily average turnover in currency derivatives surged by 83% from US$ 1.91 billion in 2011 to 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.

Author: Stephen Manallack

Former President, Australia India Business Council, Victoria and Author, You Can Communicate; Riding the Elephant; Soft Skills for a Flat World (published by Tata McGraw-Hill INDIA); Communicating Your Personal Brand. Director, EastWest Academy Pty Ltd and Trainer/Speaker/Mentor in Leadership, Communication and Cross Cultural Communication. Passionate campaigner for closer western relations with India. Stephen Manallack is a specialist on “Doing Business with India” and advisor/trainer on “Cross-Cultural Understanding”. He is a Director of EastWest Academy Pty Ltd which provides strategic advice and counsel regarding business relations with India. A regular speaker in India on leadership and global communication, his most recent speaking tour included a speech to students of the elite Indian university, Amity University, in Noida. He also spoke at a major Federation of Indian Chambers of Commerce and Industry (FICCI) global summit, the PR Consultants Association of India in Delhi, the Symbiosis University in Pune and Cross-Cultural Training for Sundaram Business Services in Chennai. He has visited India on business missions on 10 occasions and led three major trade missions there. He provides cross-cultural training – Asia and the west.

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