NSE is the world's largest derivatives exchange for the third consecutive year

Tags: Economics/Business

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).

  • Around 17.3 billion derivatives contracts were traded on the NSE in 2021, nearly double that of 8.9 billion traded in 2020
  • The country’s top bourse was ahead of the USA’s CME Group and Brazil’s B3. 
  • Technically, the number of derivatives contracts traded in the USA is far higher, but liquidity is fragmented among different trading venues, such as the CME Group, Nasdaq, and CBOE group.
  • The NSE’s most successful derivatives offerings were Bank Nifty (Rank 1 within Index options category) and the Nifty50 index (Rank 2 within Index options category), which generated the highest volume globally at an individual product level.
  • The US Dollar – Indian Rupee options contract ranks 1st by the number of contracts traded in the currency options category.
  • 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.
  • NSE has recently announced the launch of derivatives on the Nifty Midcap Select index from January 24, 2022.

What are Derivatives

In finance, Derivatives are an arrangement or product (such as a future, option, or warrant) whose value derives from and is dependent on the value of an underlying asset, such as a commodity, currency, or security.

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