The National Stock Exchange of India cemented its place as the largest derivatives exchange in the world in 2022. Mumbai-based NSE traded over 38 billion contracts in 2022, followed by the Brazilian B3 with 8.3 billion.
What is a derivative?
A derivative is a financial instrument that is based on an underlying asset, such as an equity, commodity, or currency. It can be traded over-the-counter or on an exchange. The most common types of derivatives are futures, options, forwards and swaps.
How large is the derivative market?
There are billions of derivatives traded globally every year. The largest markets for derivatives trading are Asia Pacific and North America. Currency options and futures alone contribute hundreds of millions of dollars in volume to the largest exchanges. Much of this volume is due to large corporations trying to hedge risk. For example, an international corporation may invest in a currency derivative to ensure that it can buy a particular currency at or below a certain price at some point in the future, protecting against an unfavorable shift in the exchange rate.
FAQs
Largest derivatives exchanges worldwide 2020-2022, by volume
What is the largest derivatives exchange in the United States? ›
CME Group, once again the world's largest derivatives exchange measured by volume, led the way in North America. The total volume in 2018 was 4.84 billion contracts, up 18.5% from the prior year, with most of that growth coming in its equity index and interest-rate products.
What is the number one derivative exchange in the world? ›
About National Stock Exchange of India Limited (NSE):
National Stock Exchange of India (NSE) is the world's largest derivatives exchange by trading volume (contracts) as per the statistics maintained by Futures Industry Association (FIA) for calendar year 2023.
What is the most commonly traded derivative? ›
Stock or equity derivatives: Common stock is the most commonly traded asset class used in exchange-traded derivatives. As exchange-traded derivatives tend to be standardized, not only does that improve the liquidity of the contract, but also means that there are many different expiries and strike prices to choose from.
What is the volume of exchange-traded derivatives? ›
Worldwide volume of exchange-traded derivatives reached 16.79 billion contracts in January, the highest level ever recorded. This was up 10.7% from December 2023 and up 97.2% from January 2023.
What are the top 5 derivatives markets? ›
Five of the more popular derivatives are options, single stock futures, warrants, a contract for difference, and index return swaps.
What is the world's leading derivatives marketplace? ›
As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities.
Which is the largest futures exchange by volume? ›
Largest derivatives exchanges worldwide 2020-2022, by volume
The National Stock Exchange of India cemented its place as the largest derivatives exchange in the world in 2022. Mumbai-based NSE traded over 38 billion contracts in 2022, followed by the Brazilian B3 with 8.3 billion.
What is the largest exchange in the world? ›
The largest stock exchange in the world is the New York Stock Exchange. Other large stock exchanges include the Nasdaq, the National Stock Exchange of India, the Hong Kong Stock Exchange, the Singapore Stock Exchange, and the Shanghai Stock Exchange.
What is the largest US options exchange? ›
Cboe provides choice for our diverse trading customers by operating four U.S.-listed cash equity options markets, including the largest options exchange in the U.S. – Cboe Options Exchange.
The four major types of derivative contracts are options, forwards, futures and swaps.
What bank holds the most derivatives? ›
JPMorgan Chase, in particular, is noted for its substantial exposure to derivatives risk, topping the list with roughly $58 trillion in derivatives.
What are the two most common derivatives? ›
There are two broad categories of derivatives: option-based contracts and forward-based contracts.
- 1.2. 1 Option-based derivative contracts. Option-based derivative contracts provide the holder with the option, but not the obligation, to exercise the contract. ...
- 1.2. 2 Forward contracts.
Volume is the number of shares of a security traded during a given period of time. Generally, securities with higher daily volume are more liquid than those without since they are more active. Volume is an important indicator in technical analysis because it measures the relative significance of a market move.
What is the difference between volume and trade volume? ›
Trading volume is a measure of how much a given financial asset has traded in a period of time. For stocks, volume is measured in the number of shares traded. For futures and options, volume is based on how many contracts have changed hands.
What does trade volume tell you? ›
Trading volume, which measures the number of shares traded during a particular time period, can help. While swings in trading volume may not be enough on their own to reveal changes in a trend, they can give you a sense of how much strength there is behind a move.
What is the largest options exchange in the US? ›
The CBOE is the largest options exchange in the world and was founded in 1973. It is located in Chicago, Illinois, USA.
What is the largest exchange in the US? ›
New York Stock Exchange (NYSE): The NYSE is the biggest equities exchange in the world.
Who are the largest derivatives dealers? ›
U.S.-based derivatives dealers are Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley.
What is the largest organized stock exchange in the United States? ›
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is the largest stock exchange in the world by market capitalization. New York City, U.S.
