Largest derivatives exchanges worldwide 2020-2021, by volume

The National Stock Exchange of India cemented its place as the largest derivatives exchange in the world in 2021. Mumbai-based NSE traded 17.3 billion contracts in 2021, followed by the Brazilian B3 with 8.76 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.