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NSE Regains Equity Options Share as Commodities Trading Gains Momentum
The National Stock Exchange of India Limited, or NSE, is regaining some business in equity options, according to its leader, Ashishkumar Chauhan.
NSE is also seeing more trading in commodities.
Commodities include products linked to crude oil and natural gas.
The exchange wants commodities to become a larger source of income.
New rules designed to reduce excessive speculation have slowed options trading.
In August, NSE’s average daily futures and options turnover fell by 10%.
Even after the slowdown, weekly equity options provide about 40% of NSE’s revenue.
NSE hopes foreign investors will use its platform for commodity derivatives as that market grows.
NSE CEO Ashishkumar Chauhan said the exchange is regaining market share in equity options.
Chauhan said commodities trading is increasing as NSE seeks to diversify beyond equity derivatives.
NSE shares began trading on the BSE on Thursday, one day before Chauhan’s comments.
NSE’s average daily futures and options turnover fell 10% in August to Rs 193 lakh crore.
Weekly equity options remain responsible for about 40% of NSE’s revenue, while the exchange explores new commodity products.
- Who
- National Stock Exchange of India Limited (NSE) Managing Director and CEO Ashishkumar Chauhan, along with NSE and other market participants.
- What
- NSE is regaining equity-options market share while reporting increased commodities activity and seeking to diversify its revenue.
- Where
- India’s capital markets, including trading on NSE and the BSE.
- When
- Chauhan made the comments one day after NSE shares began trading on Thursday; the article cites August trading data.
- Why
- Regulatory measures have slowed speculative equity-options activity, prompting NSE to pursue commodities and other products to broaden its revenue base.
Key facts
- NSE market debut
- NSE shares began trading on the BSE on Thursday.
- Equity-options revenue
- Weekly equity options account for around 40% of NSE’s revenue.
- NSE August turnover
- Average daily futures and options turnover fell 10% month-on-month to Rs 193 lakh crore.
- BSE August turnover
- Average daily futures and options turnover fell 34% month-on-month to Rs 154 lakh crore.
- Commodity products
- NSE offers commodity contracts linked to crude oil and natural gas.
- Planned products
- NSE is working with the regulator on bond-index futures and options.
- Regulatory impact
- Measures intended to reduce excessive speculation slowed the options market and changed its economics.
Quotes
Ashishkumar Chauhan
NSE Managing Director and CEO
“The cycle of derivatives tightening is broadly done”
businesstoday.in
Sources
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