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NSE Remains World’s Largest Derivatives Market for 3rd Straight Year; NSE Indices launches Nifty India Defence Index

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NSE world's largest derivatives exchange for 3rd

The National Stock Exchange of India (NSE) has emerged as the world’s largest derivatives exchange for the third consecutive year in 2021 in terms of the number of contracts traded, based on the statistics maintained by the Futures Industry Association (FIA).

  • As per the statistics maintained by the World Federation of Exchanges (WFE) for 2021, the NSE exchange was ranked 4th by the number of trades in cash equities.
  • At the instrument level, NSE ranks first in index options and currency options by the number of contracts traded.
  • On the NSE, the trading in index options contracts on the Nifty Bank index ranks 1st and the Nifty 50 index ranks 2nd globally within the index options category by the number of contracts traded.

Top 3 Stock Exchange Markets in 2021:

RankStock ExchangeCountryTotal trading volume
1National Stock Exchange of India (NSE)India17.26 billion
2B3 exchangeBrazil8.76 billion
3CME GroupUnited States4.94 billion

Progress of NSE:

i.NSE reported a total trading volume of 17.26 billion contracts in 2021, almost double the amount traded in 2020.

ii.In 2021, the total registered investor base on NSE surpassed the 5-crore mark to reach a count of 5.5 crore investors.

iii.Foreign Portfolio investors brought in net inflows into equities for the 3rd consecutive calendar year (i.e.2021) – Rs 1,01,122 crores in 2019, Rs 1,70,262 crores in 2020 and Rs 25,752 crores in 2021.

iv.The equity derivatives daily average turnover increased by 4.2 times in the last 10 years, from Rs 33,305 crore in 2011 to Rs 1,41,267 crore in 2021.

v.In the last 10 years, the cash market daily average turnover also increased by 6.2 times from Rs 11,187 crore in 2011 to Rs 69,644 crore in 2021. In currency derivatives, the daily average turnover increased by 83 percent to Rs 26,017 crore.

Note – Recently, NSE got approval from the Securities and Exchange Board of India (SEBI) to launch derivatives on Nifty MidCap Select Index.

Additional info:

i.The US Dollar – Indian Rupee options contract ranks 1st by the number of contracts traded in the currency options category.

ii.As per the FIA data, globally equity-related derivatives accounted for the majority of the increase in trading activity in 2021.

iii.The OCC in the US continued to rank as the world’s largest clearinghouse for derivatives in terms of open interest.

-NSE Indices launches Nifty India Defence Index

i.NSE Indices, the National Stock Exchange’s index services subsidiary, launched Nifty India Defence index to track the performance of a portfolio of stocks that broadly represent the Defence theme.

ii.Stocks from the Nifty Total Market index that are forming part of the defence, aerospace, explosives and shipbuilding basic industries or those which obtain at least 10 percent of revenues from the defence industry are eligible to be included in the index.

iii.Stock weights in the index are based on their free-float market capitalisation and will be capped at 20 percent each.

iv.The index will act as a benchmark for asset managers and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds, and structured products.

v.The base date of the index is April 2, 2018, and the base value is 1000.

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About National Stock Exchange of India (NSE)

Establishment – 1992
Headquarters – Mumbai, Maharashtra
MD & CEO – Vikram Limaye