MUMBAI, March 19 -- Trading in index options on the National Stock Exchange (NSE) has surged this month, driven by heightened market volatility linked to the West Asia conflict. Average daily turnover (ADT) in Nifty and Bank Nifty contracts is on track to hit a record, even as curbs by the markets regulator on retail trading remain in place.

Rival BSE has also seen turnover climb in Sensex options, but the NSE has accounted for a larger part of the incremental volume, potentially ending the cycle of market share erosion to BSE in index options after November 2024.

Individual and proprietary traders-brokers trading for themselves-dominate the NSE's options market. BSE does not provide similar segregation.

NSE's premium-based ADT in the ...