NSE Futures Volume - not no:1 anymore!

The National Stock Exchange has lost its place as the world's top bourse for stock futures trading in terms of volume to South Africa's JSE Ltd, according to the latest report by World Federation of Exchanges (WFE).

Johannesberg-based JSE Ltd recorded 44 million transactions in stock futures during January-March 2007 compared to 30 million by city-based NSE. In comparison, JSE had recorded only 13 million contracts in January-March 2006 and gained 229%. NSE, on the other hand, witnessed 25 million contracts and posted a gain of only 18% during the corresponding period.

“This growth is the result of an aggressive advertising campaign aimed at both the retail and the wholesale market, and of positive changes in the regulatory regime of these products in South Africa,” the WFE report on derivatives trading said. Europe’s Euronext.liffe was the thirdbiggest with 12 million contracts, up 319% compared to the year-ago period.

In 2006, the Indian bourse was the most active exchange in the world for stock futures trading and more than 100 million contracts were exchanged compared to JSE’s 70 million. “However, the size of stock futures contracts is smaller on JSE than on other leading exchanges,” WFE said, adding the stock futures notional value of trades on this market was outpaced by NSE, Euronext.liffe, Eurex and Borsa Italiana.

The notional value of stock futures on the NSE was about $800 billion in 2006, while that of JSE was less than $50 billion. Euronext was the second-biggest with a notional value of more than $300 billion. NSE stock futures volume grew 50% in 2006 compared to 2005, but faster growth was recorded in some other bourses. Stock futures trading rose 185% on JSE in 2006 versus a year ago, 143% in Euronext, 681% on Hong Kong Stock Exchange.

WFE said the volume of trading in stock futures almost doubled in 2006 and this growth seemed to be continuing during the first quarter of 2007. JSE, Euronext.Liffe and Eurex showed important volume growth rates. Other exchanges where stock futures are traded in the Asia Pacific region include the Australian Stock Exchange, Honk Kong Exchanges.