NSE fastest-growing F&O bourse among world's ten largest

[Sukumar]

With investors increasingly looking beyond equities, India's National
Stock Exchange has 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 an annual report on global trading volumes released by
trade group Futures Industry Association (FIA) in Washington, National
Stock Exchange (NSE) registered a growth of 95.32 percent in its F&O
volume in 2007 to close to 380 million as against about 194 million in
2006.

NSE's growth was the quickest among the ten largest derivative
exchanges, followed by 50.36 percent increase in trading volumes at
Bolsa de Mercadorias & Futuros of Brazil.

Besides, NSE has moved up six places to become the ninth largest
derivative exchange in the world, according to FIA.

FIA said more than 15 billion futures and options contracts changed
hands during 2007 globally, representing an increase of 28 percent
from the previous year.

Following merger of Chicago Board of Trade and Chicago Mercantile
Exchange, CME Group has become the largest exchange for F&O trading,
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, Chicago Board Options Exchange,
International Securities Exchange, Bolsa de Mercadorias & Futuros,
Philadelphia Stock Exchange, NSE and Bolsa de Valores de Sao Paulo in
the top ten.

Two other Indian bourses, MCX and NCDEX, have been ranked at 28th and
35th positions respectively.

MCX has retained its position, while NCDEX has slipped from 30th
position in 2006.

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

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

FIA said this market was no longer concentrated in the major European
and North American centers.

"China, though still largely closed to foreign participants, is a huge
force in agricultural and metals futures trading. The National Stock
Exchange of India continues to move up the top exchange list, and Hong
Kong Exchanges and Clearing more than doubled its volume last year,"
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
percent in the year.

Nifty Options contract was ranked at 36th position with total volume
of 52.7 million contracts, marking an 181.8 percent 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 percent 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.