NSE among world's top ten F&O bourses

Growing interest of investors beyond the equities has catapulted the National Stock Exchange of India to a list of the world's ten largest derivative bourses, with its trading volume clocking the fastest growth in the league.

According to an annual report on global trading volumes released by Washington-based trade group Future Industry Association (FIA), NSE has moved up six places to become the ninth largest derivative exchange in the world.

Besides, two other bourses from India, MCX and NCDEX have retained their places in the top 50 - MCX retained its 28th position while NCDEX slipped five places to 30th in the rankings based on trading volume for the year 2007.

In addition, about a dozen F&O contracts being traded on NSE, MCX or NCDEX have also made it to the top 20 rankings in the individual categories.

NSE has also emerged as the fastest-growing bourse among the world's ten largest derivative exchanges as its total traded volumes nearly doubled in 2007.

According to FIA, NSE registered a growth of 95.32 per cent in its F&O volume in 2007 to close to 380 million as against about 194 million in 2006.

Following the merger of Chicago Board of Trade and Chicago Mercantile Exchange, CME Group has become the largest F&O exchange, pushing Korea Exchange to the second spot. CME and Korea Exchange saw 2.8 billion and 2.7 billion contracts respectively changing hands during the year.

The two were followed by Eurex, Liffe, CBOT, ISE, Bolsa de Mercadorias & Futuros of Brazil, Philadelphia Stock Exchange, NSE and Bolsa de Valores de Sao Paulo in top ten. FIA said more than 15 billion F&O contracts changed hands during 2007 globally, representing a 28 per cent growth.

MCX recorded a growth of 51.1 per cent to about 69 million F&O contracts in 2007, while that of NCDEX dropped 34.4 per cent to 35 million contracts.

Among the 54 exchanges reporting volumes to FIA, the fastest growth of 881 per cent was recorded by Chicago Climate Exchange to 283,758 contracts, followed by over 200 per cent growth at Turkish Derivatives Exchange and JSE South Africa.

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

Among the top 50 Exchange-traded derivative contracts, NSE's Nifty Futures was ranked 19th with 138.8 million contracts, which grew 97.5 per cent in the year. Nifty Options contract was ranked at 36th position with total volume of 52.7 million contracts, marking an 181.8 per cent growth.

Among the top 20 equity index F&O worldwide, Nifty Futures was ranked at ninth position, while Nifty Options was at 15th place in terms of number of contracts traded.

Besides, MCX's Crude Oil Futures was ranked at 11th place in the top 20 energy F&O contracts. It registered a 212 per cent growth in 2007 with a total volume of 13.9 million.

MCX's Copper and Silver Futures contracts were ranked sixth and ninth among top 20 metal F&O contracts worldwide, while Gold, Silver M and Zinc Futures contracts at the same bourse were ranked at 12th, 14th and 20th positions.

In another list of top 20 Agricultural F&O contracts, NCDEX's Pepper Futures was ranked at the 18th position. Prior to its six-place jump in 2007, NSE had slipped one position in the overall F&O league table to 15th in 2006, from 16th in 2005, according to FIA.

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