National Stock Exchange of India (NSE) has emerged as the 3rd largest exchange in the world in the equity segment by the number of trades (electronic order book) in 2022, an advancement from the previous year when it ranked 4th as per statistics maintained by the World Federation of Exchanges (WFE).
NSE has also maintained its position as the world’s largest derivatives exchange in 2022 by the number of contracts traded based on statistics maintained by Futures Industry Association (FIA), a derivatives trade body.
The calendar year witnessed the benchmark equity index – the Nifty 50 touching lifetime high of 18,887.60. Significant strengthening in liquidity was witnessed in most of the product categories, including equity, equity derivatives, and currency derivatives. In the equity segment, Exchange Traded Funds (ETFs) daily average turnover stood at ₹470 crores in CY22, an increase of 51% YoY. Sovereign Gold Bonds daily average turnover in secondary market stood at ₹7 crores in CY22, an increase of 59% YoY. Government securities, which have been made available in equity segment of NSE, are also seeing significant growth, albeit on a lower base with volumes touching daily average turnover of ₹3 crores in last month.
In the derivatives segment, the recently launched derivatives on Nifty Financial Services index (FINNIFTY) has witnessed successful built up in liquidity along the lines of derivatives on Nifty 50 Index (NIFTY) and Nifty Bank index (BANKNIFTY).
NSE is expected to shortly begin the Social Stock Exchange as segment subject to regulatory approvals. This would enable ‘Social Enterprises’ particularly the Non-Profit Organisations to showcase their work to a wider audience and mobilise funds through issuance of instruments, such as Zero Coupon Zero Principal Bonds, facilitate participants to participate in philanthropic causes and bring in efficiency and transparency in the overall ecosystem.
On the derivatives side, NSE is working on new products in the currency and interest rate segment, as well as the commodity derivatives segment and will announce the launch shortly, subject to regulatory approvals.