NSE in Top 10 global derivatives bourse list

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The growing equity cult in India and the increasingly sophisticated products offered under the futures & options (F&O) segment has pitchforked the National Stock Exchange (NSE) into the Top Ten club of global derivatives bourses. The NSE emerged the fastest-growing bourse among the world’s ten largest derivative exchanges, as its total traded volumes nearly doubled in 2007.

According to an annual report on global trading volumes released by Washington-based trade group Futures Industry Association (FIA), the NSE has moved up six places at a time when global derivatives trading has grown by 28% to 15 billion F&O contracts in 2007, it said.

Besides, two other derivatives bourses from India—MCX (28th place) and NCDEX (30th)—retained their places in the top 50 in rankings based on trading volume for 2007.

According to the FIA report, following this, the share of Asia-Pacific in global exchange-traded derivatives volumes stood the second highest at 27.57%, while the top position was retained by North America at 40.41%. European derivatives exchanges came in third with a 22.09% share.

FIA said the market was no longer concentrated in North American and European centres. China, though still largely closed to foreign participants, has become a huge force in agricultural and metals futures trading, while the NSE continues to move up the list, it noted.

Vineet Bhatnagar, MD, MFGlobal Sify Securities, said, “The signs of a growing derivatives market are an indicator of that. This is possible only because Indian markets have received all-round participation, including from hedgers, arbitrageurs and directional traders both private and institutional groups.”