Based on data released by the derivatives trade association Futures Industry Association (FIA), the NSE Group—which consists of the National Stock Exchange of India and NSE International Exchange—has been ranked the largest derivatives exchange group in the world in terms of the quantity of contracts traded in calendar year 2023.
In the year 2023, the National Stock Exchange of India (NSE) will hold the title of largest derivatives exchange in the world for a fifth year running. According to data kept by the World Federation of Exchanges (WFE), NSE is ranked third in the world in the equity segment based on the quantity of trades (electronic order book) in 2023.
Many significant events have occurred this year, including the market capitalization of listed companies surpassing USD 4 trillion, the benchmark of Rs 1,00,000 crore being reached by SME listed companies, and the first-ever breach of the 20,000 index levels by the Nifty 50 index. By the end of the year, the exchange had more than 8.5 crore unique registered investors.
For the tenth year in a row, from 2014 to 2023, the NSE saw an increase in the number of clients trading in its equity segment on an annual basis. In the equity segment, the year also saw record-breaking turnover on a single day of Rs 167,942.47 crores on November 30, 2023, and Rs 381,623.12 crores in the equity derivatives segment on December 2, 2023. The ratio of equity derivatives to cash market turnover decreased slightly this year, falling from 2.86 in 2022 to 2.64 in 2023.
The transition of the equity segment to T+1 basis settlement of all securities was completed. The period for listing securities in the primary market has been shortened to T+3 days.
This year, Exchange introduced a new segment called the Social Stock Exchange, which will help social enterprises (NPOs and FPEs) raise money by issuing Zero Coupon Zero Principal Bonds and showcasing their work to a larger audience. This will enable participants to support charitable causes and improve efficiency and transparency throughout the ecosystem.
42 Non-Profit Organizations (NPOs) have registered in the segment, and one NPO has raised funds.
Commodity options on futures contracts on underlying such as WTI Crude Oil, Natural Gas, Gold, Silver, and Base metals, etc., are some of the 21 new commodity derivatives contracts launched by the exchange in the commodity derivatives segment.
On July 3, 2023, NSE International Exchange (NSE IX) launched the NSE IX-SGX GIFT Connect in full, opening the door for GIFT IFSC to create a larger liquidity pool for Nifty products. Trading for GIFT NIFTY contracts is open for nearly 21 hours, spanning US, European, and Asian trading hours.
Sriram Krishnan, Chief Business Development officer, NSE said, “Ranking 3rd in the equity segment and being the largest derivatives exchange demonstrates the strong capabilities of Indian capital market ecosystem on the global map. This will help attract new investors as well as fund flows
to Indian markets, thereby aiding capital formation. I take this opportunity to thank Government of India, Securities and Exchange Board of India, Reserve Bank of India, Trading members, Investors, and all other stakeholders for their continued support.”