BSE overtakes NSE with higher F&O turnover with sudden spike

With a sudden spike in trade volume of three Sensex option contracts, BSE today surpassed its larger rival NSE with a record high equity derivative turnover of Rs 3.36 lakh crore.
BSE's larger rival NSE, which generally commands more than 80 per cent of market share in equity derivatives market, today recorded a lower F&O turnover of Rs 3.29 crore.
This included index option turnover of Rs 2.29 crore. This is the first time that BSE has recorded a higher F&O turnover than that of NSE.
Overall, total market turnover of BSE and NSE combined topped Rs 6.67 lakh crore to mark a new record.

BSE had recorded total F&O turnover of Rs 1.13 crore yesterday, as against NSE's Rs 2.75 lakh crore. So far this month, BSE's F&O turnover has been in the range of Rs 37,000 crore to Rs 1.48 lakh crore before today's sudden spike.
In comparison, NSE's F&O turnover has ranged between Rs 1.15 lakh crore to Rs 2.75 lakh crore this month, before crossing Rs 3 lakh crore mark today.

The development comes just two days ahead of the expiry of current month derivative contracts on Thursday. The markets incidentally witnessed a strong rally today and the benchmark index Sensex rallied by over 337 points to close at 25,368.90.

While regulatory officials, exchange executives and traders said that prima facie it appeared to be an aberration, they did not rule out an investigation or necessary actions by Sebi in case its surveillance data shows any manipulation as large volumes have been recorded in Sensex 'put' option contracts or bets on fall in Sensex value.
Traders also said a new Liquidity Enhancement Incentive Programme for Derivatives, introduced by BSE with effect from May 30, 2014 for Sensex options and other contracts could have been at play.
When contacted, a BSE spokesperson declined comment.
The incentive programme has been approved by the Sebi, but it can look into the matter if it suspects any abuse, a regulatory official said.

At the end of today's trading, BSE recorded total F&O (Futures and Options) turnover of over Rs 3.36 lakh crore with more than 91.6 lakh traded contracts. Out of this, the 'put' contracts in Index Option segment recorded Rs 3.34 lakh crore turnover with over 91 lakh contracts.
Even within the Index Option Put Contract segment, just three contracts accounted for almost entire volume.
While one contract, put option for Sensex value of 24,400 points recorded a turnover of over Rs 2.06 lakh crore, another for Sensex at 24,600 points of over Rs 1.07 lakh crore and the third contract for Sensex at 24,200 points saw a turnover of more than Rs 19,000 crore.