According to the volume of contracts traded, the National Stock Exchange(NSE) of India became the biggest derivatives market in the world in 2023, 5th consecutive time in past 5 years!
By volume of contracts traded, the National Stock Exchange(NSE) of India became the largest derivatives market globally in 2023, maintaining its five-year lead over its peers. Moreover, it was the third-ranked equity market in the world by the quantity of trades (electronic order book).
According to data released by the derivatives trade body Futures Industry Association (FIA), “NSE Group (National Stock Exchange of India and NSE International Exchange) has again emerged as the world’s largest derivatives exchange group in the calendar year 2023 by number of contracts traded,” the stock exchange stated in a release on Thursday.
Major milestones of NSE in 2023
The Indian stock market was joyous in the previous year because Indian exchanges were setting new monthly benchmarks. The market capitalization of listed businesses exceeded USD 4 trillion in 2023, SME listed companies topped ₹1,00,000 crore, and the Nifty 50 index crossed the 20,000 index levels for the first time, among other significant achievements made by the Indian stock market indices.
Furthermore, by the end of 2023, 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 stock segment on an annual basis.
The performance of the equity segment also improved during the year; on November 30, 2023, its turnover shot up to a new high of ₹167,942.47 crores. On December 2, 2023, its equity derivatives section had a growth of ₹381,623.12 crores. The ratio of stock derivatives to cash market turnover decreased somewhat this year, falling from 2.86 in 2022 to 2.64 in 2023.
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Ranked 3rd In Equity Segment
According to the World Federation of Exchanges, NSE is rated third globally in the equities segment by the number of trades (electronic order book) in 2023.
“The Indian capital market ecosystem has demonstrated its tremendous capabilities on a global scale, as evidenced by its ranking third in the equity segment and its status as the largest derivatives exchange. This will support capital formation by bringing in new investors and money flows to the Indian markets, according to Sriram Krishnan, chief business development officer of the NSE.
In 2023, the ratio of equity derivatives to cash market turnover decreased slightly to 2.64.
The transition of the equities segment to T+1 basis settlement of all securities was completed. The period for listing securities on the primary market has been lowered to T+3 days.
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T+1 Settlement – One Biggest Change
The switch to T+1 settlement for all equities was one of the biggest changes to the stock market indices. The stock market’s increased liquidity and shorter wait times for investors executing security transactions are mostly due to the T+1 settlement.
The period for listing securities on the primary market has been reduced to T+3 days. With tools like Zero Coupon Zero Principal Bonds, the NSE made sure to help social enterprises (NPOs and FPEs) reach a wider audience for their work under its recently launched Social Stock Exchange segment. This allowed participants to contribute to charitable causes and improved efficiency and transparency across the ecosystem.
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