NSE world's largest derivatives exchange for fourth straight year in 2022

The National Stock Exchange of India (NSE) has again emerged as the world's largest derivatives exchange in 2022, in terms of the number of contracts traded, according to the Futures Industry Association (FIA).

This is the fourth consecutive year when the exchange earned the top spot, the NSE said in a statement on Sunday.

In addition, the exchange was ranked third in the equity segment by the number of trades (electronic order book) in 2022, an advancement from the previous year when it was in the fourth position, as per statistics maintained by the World Federation of Exchanges (WFE).

The calendar year witnessed the benchmark equity index the Nifty 50 touching lifetime high of 18,887.60. Further, significant strengthening in liquidity was seen in several product categories, including equity, equity derivatives and currency derivatives.

In the equity segment, exchange-traded funds (ETFs) daily-average turnover stood at Rs 470 crore in CY 2022, an increase of 51 per cent year-on-year (Y-o-Y).

Sovereign Gold Bond's daily average turnover in the secondary market was Rs 7 crore in CY 2022, a jump of 59 per cent YoY.

Government securities, which have been made available in the equity segment of NSE, are also seeing significant growth, although on a lower base, with volumes touching a daily average turnover of Rs 3 crore last month.

"The achievement of being ranked 3rd in equity segment and largest exchange in derivatives is a culmination of the collaborative effort of all the stakeholders," Sriram Krishnan, Head of Business Development, NSE noted.

NSE said it is expected to soon begin the Social Stock Exchange as a segment subject to regulatory approvals.

This would enable 'Social Enterprises', particularly non-profit organisations to showcase their work to a wider audience and mobilise funds through the issuance of instruments, such as Zero Coupon Zero Principal Bonds and bring efficiency and transparency to the overall ecosystem.

On the derivatives side, NSE said it is working on new products in currency, an interest rate segment and the commodity derivatives segment, and will soon announce the launch. This is subject to regulatory approvals.