NSE now India's second largest commodity platform
₹38,418 crore in January against the NCDEX's ₹12,509 crore, according to data from markets regulator Sebi (Securities and Exchange Board of India). This is the first time that NSE has overtaken the 2003-founded NCDEX by volumes. About ₹38,387 crore, or 99.99%, of NSE’s turnover in January came from options on crude oil futures contracts.
On an annual basis, though, NCDEX is still a whiff ahead of NSE. The traded value of NSE in the commodity derivatives segment (CDS) in the current fiscal (till 26 February) stands at ₹1.19 trillion, up almost seven times from just ₹17,755 crore in FY23. NCDEX's turnover in the same period stands at ₹1.93 trillion, down almost 7% from ₹2.07 trillion in FY23.
To be sure, both the exchanges' CDS turnover in January pales compared to that of market leader MCX, which in January posted ₹30.28 trillion turnover, giving it a market share of 98.3%. Against this, the market share of NSE was 1.2% during the month, and of NCDEX, 0.4%. BSE’s market share was close to zero in January.
For the current fiscal, MCX’s turnover stands at ₹246.65 trillion, up 67% from the previous fiscal. However, despite being a "distant second", any traction gained by NSE offers a "credible alternative" to market participants in the event of an “unforeseen exigency", said Gnanasekar Thiagarajan, director of commodity research firm Commtrendz. He cited a technical glitch at MCX on 13 February, which halted trading for four hours, raising anxiety levels for market participants who had overnight positions on gold, crude, etc.
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