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Equity exchanges reported all-round growth in volumes in Sep’22 (Aug’22 was also strong). There was strong recovery in cash volumes (NSE+BSE) from Rs475/498/636bn in Jun/Jul/Aug’22 to Rs669bn in Sep’22. BSE’s cash volume market share moderated to 8% in Sep’22 from ~9% in Aug’22 but continues to remain higher compared to 6%/6.5% in Jun/Jul’22, respectively. Equity derivative ADTV rose to an all-time high of Rs153trn. MCX commodity futures ADTV (Rs251bn) saw sequential improvement despite drop in commodity prices while commodity options ADTV (Rs350bn) has continued its upward trajectory in Sep’22 (15% growth over Aug’22). Currency derivatives volumes, too, reported a sequential improvement. CDSL/NSDL added 0.43mn/1.7mn demat accounts in Aug’22. CDSL’s market share stood at 71% in terms of total demat accounts and 80% in incremental demat accounts added in FY23-TD.

* Equity cash ADTV grew 5% MoM in Sep’22: In Sep’22, NSE’s ADTV grew 6.2% MoM to Rs615bn while that of BSE dipped 4.8% MoM to Rs54bn on a high base. Q2FY23 NSE/BSE cash ADTV changed (-)1.4%/16.8% QoQ but declined 14.3%/15.7% YoY. Q2FY23 BSE cash market share inched up 110bps QoQ to 7.9%.

* Equity derivatives witnessed sharp MoM growth led by options volumes. NSE options ADTV grew 13% MoM in Sep’22 to Rs150trn (all-time high). As a multiple of NSE cash ADTV, it has been 244x in Sep’22 as against sub-100x level seen prior to Oct’21. Strong growth in options ADTV in Sep’22 has been contributed by two factors: a) Growth in number of contracts traded (+10% MoM) and b) increase in volatility (which has a bearing on option prices). NSE futures ADTV grew 6.3% MoM to Rs1.3trn. BSE equity options ADTV declined 5% in Sep’22. Options ADTV grew 24% QoQ while futures ADTV declined 0.5% QoQ in Q2FY23.

* Currency derivatives ADTV grew 13% MoM in Sep’22. Currency ADTV for NSE/BSE grew 13/11% MoM. BSE’s market share stood at ~18.1% in Sep’22/ Aug’22 compared to 26% in Sep’21. Q2FY23 currency derivatives increased ~31% QoQ.

* MCX reported 12% MoM growth in its futures ADTV; option ADTV continues to rise. MCX’s adjusted-ADTV (futures +1/3 options) rose 13% MoM in Sep’22 to Rs370bn. MCX futures ADTV grew 12% MoM to Rs251bn led by an increase in contracts traded while prices dropped sequentially for almost all commodities. On the options front, MCX reported an ADTV of Rs355bn, up 15% MoM. Strong growth in options ADTV was led by gold, natural gas and crude ADTV offset by drop in silver options ADTV. Q2FY23 MCX futures ADTV has dipped 6.7% QoQ while options ADTV has grown 58% QoQ. We estimate Q2FY23E MCX’s total revenue to rise 14.5% QoQ to Rs1.2bn and total expenses may be up 5% QoQ. This will likely result in EBITDA of Rs617mn, up ~25% QoQ and ~500bps QoQ expansion in EBITDA margin.

* MF trading: BSE remains dominant. Number of orders on BSE/NSE MF platform grew 37%/18% YoY to 20.7mn/3.5mn, respectively, in Sep’22. BSE maintained its dominant market share of 86%/69% in terms of the number of orders/value traded.

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