5th Anniversary

Futures & Options Segment

of NSEFutures & Options Segment of NSE marks its 5th

Anniversary - today following a period of

phenomenal growth in the segment in terms of

Volume, Market Share, Market Participants,

Benchmarking with Global Standards and

Technology over its five year history.

The journey towards this milestone encompassed

the relentless efforts of NSE and the concrete

support from SEBI and NSE’s Market Participants.

To commemorate this occasion, NSE is introducing

future and options products on a new index namely,

BANK NIFTY, an index comprising of the most liquid

and large capitalized Indian Banking stocks

providing investors and market intermediaries with a

benchmark that captures the capital market

performance of Indian Banks. The index will have 12

stocks from the banking sector, which trade on NSE.

The Indian Derivative Marketopened today by celebrating the

5thAnniversary of

Futures & Options Segment

On June 12, 2000

•Launch of the Futures & options Segment

•Product Index Futures – S&P CNX NIFTY

2000-01 2003-042002-032001-02 2004-05

Launch of Products

•Index Options

(NIFTY)

•Stock Options

•Stock Futures

Largest Derivatives Exchange in India

•12 new securities were added

•Achieved new heights in all our products

•Introduced CNX IT & additional securities

•Launch of Interest Rate Futures

•Number 1 in Stock Futures in the world

•Institutional participation at its highest

Steps to new heights………….•Launch on June 13, 2005 of BANK Nifty

•Introduced 65 new securities

•Enhancement of number of strikes for NIFTY Options

2005 onwards

Growth of NIFTY FuturesGrowth of NIFTY Futures

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2000-01 2001-02 2002-03 2003-04 2004-05

Financial Year

No

of

con

trac

ts t

rad

ed

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Val

ue

of

con

trac

ts (

Rs

Cro

re)

No. of Contracts

Value of contracts ( Rs. Crs)

Launched on June 12, 2000

Recorded a growth of 300 times from the

launch

Growth of NIFTY Options

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

2001-02 2002-03 2003-04 2004-05

Financial Year

No

of

con

trac

ts t

rad

ed

0

20000

40000

60000

80000

100000

120000

140000

Val

ue

of

con

trac

ts (

Rs

Cro

re)

No. of Contracts

Value of contracts ( Rs. Crs)

Launched on June 04,

2001

Recorded a growth of 30 times from the

launch

Growth of Stock Options

0

1000000

2000000

3000000

4000000

5000000

6000000

2001-02 2002-03 2003-04 2004-05

Financial Year

No

of

con

trac

ts t

rad

ed

0

50000

100000

150000

200000

250000

Val

ue

of

con

trac

ts (

Rs

Cro

re)

No. of Contracts

Value of contracts ( Rs. Crs)

Launched on July 02,

2001

Recorded a growth of 6 times from the launch

Growth of Stock Futures

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

45000000

50000000

2001-02 2002-03 2003-04 2004-05

Financial Year

No

of

con

trac

ts t

rad

ed

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

Val

ue

of

con

trac

ts (

Rs

Cro

re)

No. of Contracts

Value of contracts ( Rs. Crs)

Launched on November 09,

2001

Number 1 in the World

Recorded a growth of 30 times from the launch

Participants’ Statistics at the end of 5 years

• Number of Members increased by

• Institutional participation enhanced by

• Clientele base broadened by

5 times

1000 times

5 times

Stock FuturesNSE v/s World Exchanges

2001

Source: World Federation of Exchanges

2%

38%

27%

16%

6%

4%3% 2% 1%

National Stock Exchange of India Spanish Exchanges (BME) EURONEXT RTS Stock Exchange

Stockholmsboersen Budapest SE JSE South Africa Australian SE

Oslo Bors Warsaw Stock Exchange Bourse de Montréal Athens Derivatives Exchange

SFE Corporation Hong Kong Exchanges & Clearing Singapore Exchange BOVESPA

FUTOP

Stock FuturesNSE v/s World Exchanges

2002

Source: World Federation of Exchanges

15%

37%22%

13%

4%4% 2% 1%1%

National Stock Exchange of India RTS Stock Exchange Spanish Exchanges (BME) EURONEXTJSE South Africa HEX Stockholmsboersen Australian SE Budapest SE Athens Derivatives Exchange Warsaw Stock Exchange Italian Exchange EUREX SFE Corporation Bombay Stock Exchange Hong Kong Exchanges & ClearingSingapore Exchange FUTOP

Stock FuturesNSE v/s World Exchanges

2003

Source: World Federation of Exchanges

30%

37%

15%

8%

5% 2% 1%1%

National Stock Exchange India RTS SEBME Spanish Exchanges

Euronext JSE South AfricaOMX Stockholm SE Budapest SEAthens Derivatives Exchange Borsa ItalianaAustralian SE BSE, The SE MumbaiWarsaw SE SFE Corp.Hong Kong Exchanges Copenhagen SE

Stock FuturesNSE v/s World Exchanges

2004

Source: World Federation of Exchanges

31%

11%

10%

7%4% 1%

35%

National Stock Exchange India RTS SE Euronext BME Spanish Exchanges

JSE South Africa OMX Stockholm SE Borsa Italiana Athens Derivatives Exchange

Budapest SE Australian SE Warsaw SE BSE, The SE Mumbai

SFE Corp. Hong Kong Exchanges MexDer Wiener Börse

Copenhagen SE

Index FuturesNSE v/s World Exchanges

Rank Name of Stock Exchange

Number of contracts

1 Chicago Mercantile Exchange 102,165,253

2 EUREX 63,833,842

3 EURONEXT 44,610,549

4 Korea SE * 31,502,000

5 Stockholmsboersen 14,906,505

6 JSE South Africa 10,518,672

7 Osaka Securities Exchange 10,478,441

8 Singapore Exchange 9,015,837

9 Italian Exchange 6,035,207

10 BM&F 5,262,965

11 Hong Kong Exchanges & Clearing 5,173,709

12 Tokyo SE 5,092,652

13 Chicago Board of Trade 4,926,973

14 TAIFEX 4,346,253

15 Spanish Exchanges (BME) 4,342,938

16 SFE Corporation 3,881,745

17 Warsaw Stock Exchange 3,679,972

18 Athens Derivatives Exchange 1,839,807

19 Budapest SE 1,236,405

20 Bourse de Montréal 1,174,328

21 HEX 988,544

22 National Stock Exchange of India 740,956

Rank Name of Stock Exchange

Number of contracts

1 Chicago Mercantile Exchange 212,177,526

2 EUREX 120,438,555

3 EURONEXT 51,901,626

4 Korea SE * 42,868,164

5 Stockholmsboersen 13,331,795

6 Osaka Securities Exchange 11,134,738

7 Singapore Exchange 10,209,261

8 Chicago Board of Trade 8,940,486

9 JSE South Africa 8,026,118

10 Tokyo SE 7,273,395

11 Italian Exchange 7,011,175

12 TAIFEX 6,377,808

13 Hong Kong Exchanges & Clearing 5,919,028

14 BM&F 5,245,270

15 Spanish Exchanges (BME) 4,622,108

16 SFE Corporation 3,761,904

17 Warsaw Stock Exchange 3,077,836

18 Athens Derivatives Exchange 2,429,532

19 National Stock Exchange of India 1,641,779

20 Bourse de Montréal 1,458,942

Rank Name of Stock Exchange

Number of contracts

1 Chicago Mercantile Exchange (CME) 281035970

2 Eurex 155988661

3 Korea Exchange 62932780

4 Euronext 56689805

5 Chicago Board of Trade (CBOT) 15282007

6 OMX Stockholm SE 14567900

7 Singapore Exchange 13607659

8 Osaka SE 13231287

9 National Stock Exchange India 10557024

10 TAIFEX 9953118

11 Tokyo SE 9500102

12 JSE South Africa 8655357

13 Hong Kong Exchanges 8105877

14 BM&F 7789427

15 Borsa Italiana 6834482

16 BME Spanish Exchanges 4616795

17 SFE Corp. 4288869

18 Warsaw SE 4132749

19 Athens Derivatives Exchange 2886150

20 Bourse de Montreal 1690900

Rank Name of Stock Exchange

Number of contracts

1 Chicago Mercantile Exchange (CME) 306058836

2 Eurex 161855167

3 Korea Exchange 55608856

4 Euronext 52732215

5 National Stock Exchange India 23354782

6 Chicago Board of Trade (CBOT) 23276014

7 OMX Stockholm SE 16460920

8 Singapore Exchange 16428769

9 TAIFEX 14634573

10 Osaka SE 14583283

11 Hong Kong Exchanges 11805613

12 Tokyo SE 10306359

13 BM&F 9962204

14 JSE South Africa 9425032

15 BME Spanish Exchanges 5537365

16 Borsa Italiana 4816955

17 SFE Corp. 4622207

18 Warsaw SE 3517782

19 Athens Derivatives Exchange 2922919

20 Bourse de Montreal 1910248

Source: World Federation of Exchanges

2001200220032004

NIFTY FuturesNSE’s World Rankings

Source: World Federation of Exchanges

1

5

9

13

17

21

25

2001 2002 2003 2004Year

Ran

kin

g in

th

e w

orl

dNo. 5

NIFTY Option Strikes

-4

-3

-2

-1

0

1

2

3

410

00

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

2100

2200

2300

2400

2500

2600

2700

2800

2900

3000

NIFTY Index Values

Per

cen

tag

e C

ove

r

Coverage(%) by new scheme

Coverage(%) in previous scheme

Number of strikes are NOW linked to NIFTY values, thus providing consistent coverage

As per Previous scheme Fixed strike intervals of 3 – 1 – 3

were provided, resulting in an erosion of the coverage for the

NIFTY Options

Comparison of Derivative & Equity segments

0

50000

100000

150000

200000

250000

300000

350000

Jun

-20

00

No

v-2

00

0

Ap

r-2

00

1

Se

p-2

00

1

Fe

b-2

00

2

Jul-2

00

2

De

c-2

00

2

Ma

y-2

00

3

Oct

-20

03

Ma

r-2

00

4

Au

g-2

00

4

Jan

-20

05

Months/Year

Tra

de

d V

alu

e (

Rs

in

cro

res

)

0

0.5

1

1.5

2

2.5

3

Ra

tio

Equity volumes

Derivatives volumes

Ratio between Derivatives & Equity

Volumes of the Derivative Segment is now consistently at around 2.5 times

of the Equity Segment

We now take pleasure to Welcome our new entrant into the

NIFTY family * BANK Nifty *

We would like to take this opportunity to thank each one of

you, in being our pillars to success!!