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Equity derivatives continue to grow; cash ADTV reverting to less than Rs650bn; MCX options show traction

Exchange volumes in Aug’21 declined sequentially for the commodity segment while equity derivatives grew 6% and cash segment remained flat. Cash ADTV (average daily turnover value) for NSE remained flat MoM while that for BSE declined 6% MoM. NSE equity derivatives’ ADTV was up 7% MoM driven by both futures and options’ notional turnover while BSE ADTV growth remained flat on MoM basis in Aug’21.

Mutual fund transactions grew 6.6% / 4% MoM for BSE / NSE. In currency derivatives, NSE reported a decline of 18.5% MoM while BSE reported growth of 0.4% MoM in Aug’21. MCX ADTV stood at Rs250bn in Aug’21 vs Rs271bn in Jul’21. NCDEX reported ADTV of Rs24bn, up 14% MoM, in Aug’21. CDSL added 2.1mn demat accounts during the month.

Equity cash: Sequential decline for BSE; NSE ADTV moving towards Rs600bn?

* In Aug’21, NSE’s ADTV was Rs629bn vs an average of Rs704bn between Apr-Jul’21. BSE’s Aug’21 cash ADTV was down 6% MoM to Rs52bn. On YoY basis, NSE / BSE ADTVs were up 3% / 17%. NSE’s cash segment market share stood at 92% in Aug’21.

Equity derivatives: Sequential improvement for NSE; BSE ADTV remains flat

* NSE’s total equity derivatives’ ADTV in Aug’21 was at Rs60trn vs Rs57trn in Jul’21 (considering notional turnover in options). NSE options’ / futures ADTV grew 7% each sequentially to Rs56.3trn / 1trn.

* BSE’s options’ ADTV remained flat MoM at Rs3trn in Aug’21.

Currency derivatives: BSE sees sequential improvement in its market share

* In Aug’21, NSE/BSE’s currency derivatives’ ADTV grew 16% / 11% YoY to Rs538bn / 239bn respectively. On MoM basis, NSE declined 18.5% while BSE’s reported ADTV remained flat. NSE’s market share in currency derivatives stood at 69% in Aug’21 vs 73% in Jul’21.

MF trading data: Surprise dip for BSE market share; value-based split of transactions on exchanges at 63% for BSE in Aug’21 vs average 71% in FY22-TD.

* Number of orders processed on BSE’s mutual fund platform grew 93% YoY to 14.1mn in Aug’21. NSE posted 81% YoY growth under the same parameter to 2.8mn.

Commodity derivatives: MCX ADTV shrunk in Aug’21; crude aids robust growth in options volumes

* MCX reported ADTV of Rs250bn in Aug’21, down 8% MoM and 42% YoY. MoM decline in ADTV was led by gold (down 16% MoM), crude (down 13% MoM) and copper (down 11% MoM). Drop in gold and copper ADTV is largely attributed to fall in volumes traded on the platform while drop in crude ADTV resulted equally from drop in both prices and volumes. Commodities that reported MoM gains were silver, due to increase in volumes traded, and natural gas due to higher prices.

* MCX commodity options ADTV has seen good traction in past 3 months led by strong pick-up in crude option volumes. MCX options ADTV for Aug’21 came in at Rs60.5bn vs Rs15bn/20bn/23bn/46bn seen between Apr’21 and Jul’21 (mainly crude). At the Aug’21 rate, options will contribute ~Rs175mn to MCX annual revenues.

* MCX indices futures continued see to MoM decline in their ADTV despite crossmargin regulation.

Depository: CDSL added 2.3mn accounts in Aug’21

* Data till Jul’21 shows CDSL / NSDL market shares at 65% / 35% respectively.

* In terms of incremental accounts opened in FY22-TD, CDSL has maintained its dominant share of 88% vs 86% in FY22. Monthly demat additions for CDSL / NSDL were 2.3mn / 0.37mn in Jul’21.

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