NSE Dominates F&O Market With 81% Of Global Trading Volume

Despite regulatory concerns, the Futures and Options (F&O) Industry is a major focus area for business for the Indian Stock Exchanges. The National Stock Exchange(NSE) and BSE have emerged as the world's top stock exchanges in terms of F&O Volume. Their combined turnover account for more than 80% of global turnover in April.

Future Industries Association(FIA) Data

The data from the Future Industries Association revealed that a total of 8,484 million contracts were traded through NSE on April 24. This is the highest among all the stock exchanges globally.BSE followed NSE with almost 2,224 Million contracts in the same month.

For NSE this is a year-on-year 92% growth rate. This is not exactly comparable with BSE as the latter saw an F&O growth in May last year.

Brazil’s B3 Stock Exchange holds the 3rd position with 692 million contracts traded in April.This shows India’s Global F&O domination.

F&O growth impact on BSE and NSE Financials

From Dec 23, BSE has seen an excess growth of Rs 30 crore in each of the following 3 months. By Feb 24 this number reached 43.04 crore. NSE hasn’t yet released such similar data but the stock exchange earned a massive Rs 12,049 crore by transaction charges. This is their single-biggest source of revenue in FY24.

Global Derivatives record for last 4 years (2020-2023)

Source: Statista

If we look at the annual records released by Statista, the NSE has been dominating the Derivative Contract Levels for the last 4 years. The number of contracts has been doubling every year, leading to a 10X growth in just 4 years. The BSE has also grown significantly and is now among the top two stock exchanges for F&O Contracts.

The Average Daily Turnover(ADTV) for BSE has grown from nearly 3.5 million contracts in FY24 to 9.12 million contracts in FY25. Similarly, NSE saw the monthly average number of contracts jump from 7,933 million contracts in FY24 to 8,653 million contracts in FY25.

SEBI Cautious About F&O Traders Losing Money

“89% of the individual traders (nine out of 10 individual traders) in the equity F&O segment incurred losses with an average loss of Rs 1.11 lakh during FY22 whereas 90% of the active traders incurred average losses of Rs 1.25 lakh during the same period” stated the Sebi study.

This volume of contracts and the money involved certainly raise concerns for more regulation. “Options and futures volumes are larger than the nominal GDP of the country. We have discussed this matter with SEBI, and they will address it,” said RBI Governor Shaktikanta Das at an event hosted by ET Now on Tuesday.

How to purchase BSE & NSE Shares?

NSE and BSE, while sharing the common goal of easing trading and investment, have different characteristics that shape their operations and market dynamics. BSE is listed in the share market while NSE is traded in the unlisted market. By understanding these core differences, you can make informed decisions and guide yourself through India’s financial market with greater confidence.

Certainly, NSE pre-IPO stock is the best bet for you if you wish to put your money into stock investment as a retail investor. NSE is dominating with more than 90% market share in all categories. Compared to BSE, its revenue growth has been three times more than BSE for the last four years.

NSE IPO is in the talks as SEBI looks forward to giving a green flag in 2024. based on the above data and the comparison, if you buyNSE unlisted shares, count on Stockify. We are one of India’s trusted online stock trading platforms where you can buy and sell unlisted shares in India from the comfort of your home.Connectwith our team to know more.