NSE becomes world's top bourse in stock futures trading

National Stock Exchange has elbowed out its South African counterpart to become the world's largest platform for stock futures trade, with a trading volume more than double of its nearest competitor.

NSE, bigger than its Indian rival Bombay Stock Exchange in trading volume, is already the world's largest bourse in terms of value of individual stock futures trade.

According to the latest data compiled by World Federation of Exchanges, as many as 2.4 crore stock futures contract were traded at NSE in October as against 83.67 lakh at Johannesburg Stock Exchange (JSE).

JSE was the world's biggest stock futures trading platform till September, when it traded 5.74 crore stock futures contracts -- nearly four times NSE's 1.77 crore.

Stock futures contract is an instrument that allows investors to reap benefits of a stock's performance without actually owning it.

In terms of total turnover of all stock futures contract, NSE recorded the highest amount of about 285 billion dollars during the month, which was nearly 20 times its nearest rival Euronext Liffe's 14.6 billion dollars.

BSE, the world's biggest stock exchange in terms of number of companies listed, is among the lowest ranked bourses in terms of number of stock futures contracts and their turnover.

The BSE witnessed trading of just 587 single stock futures contracts during the month, with a total turnover of just about six million dollars.

Via Economic Times