- NSE earns Rs 42 of every Rs 100 from weekly options and Rs 58 from other sources
- Index futures and monthly options contribute around 9% each to NSE's revenue
- Data-related services account for 12-15% of NSE's total revenue
National Stock Exchange of India (NSE) Managing Director and CEO Ashishkumar Chauhan said around Rs 42 of every Rs 100 earned by the exchange currently comes from weekly options, while the remaining Rs 58 is generated through monthly options, futures and other businesses.
Speaking to NDTV Profit after NSE shares were listed on the BSE on Thursday, Chauhan said the exchange has already diversified its revenue base over the past three years and is not as dependent on weekly options as some other exchanges.
“Today, our total revenues on operating side, if you get 100 income, around Rs 42 comes out of weekly options only. Rs 58 come from other sources which includes monthly options, futures,” Chauhan said.
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He said around 9% of NSE's revenue comes from index futures, while another 8-9% comes from monthly options. Data-related businesses, including the data company, terminals, co-location and communication services, contribute around 12-15%, according to Chauhan.
Chauhan also said the exchange has been gradually diversifying its revenue profile over the last three years.
On the potential impact of regulatory measures affecting derivatives trading, Chauhan said NSE had already factored in a significant decline in revenues when the changes began emerging. “Three years back when this started, our sort of revenues will go down 30%, 40% given the strength of newer, newer sort of measures that were coming and it went down by 3% or 2% last year,” he said.
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Chauhan said the exchange's actual revenue performance had been better than what had been expected.
NSE Plans Mobile-First Portfolio Platform
Separately, Chauhan said NSE is working on a comprehensive, mobile-first framework that could bring investors' trading data, portfolio information and analytics under a single platform. He said the data pages recently launched by NSE represent only “one small part” of a broader portfolio management framework that the exchange is developing.
The proposed platform could allow investors to access orders placed through different members, trades executed over several years and portfolio-related insights in one place.
NSE also plans to offer analytics that could help investors assess the performance of their investments and explore alternative scenarios.
“If you had bought something else, some sold something else, what would have happened? What market has done?” Chauhan said, explaining the type of analysis that could eventually be made available to users.
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The framework is being designed primarily for mobile devices, in line with the growing use of smartphones to access financial information and investment tools.
Chauhan said the screening and data capabilities available through NSE's existing platforms could eventually be made available seamlessly on mobile.
NSE shares were listed on the BSE at Rs 1,800 apiece on Thursday, marking a premium of 0.84% over the issue price of Rs 1,785 per share. However, it closed 0.94% higher than the opening price and 1.79% higher than the issue price.
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