BSE moves Bankex expiry to Monday from Friday, to be effective from Oct 16

BSE has decided to move the expiry day of Bankex derivatives contracts from Friday to Monday, effective from October 16, the bourse announced in a notice on Wednesday.

"New contracts of S&P BSE Bankex with Monday expiry will be generated at the end of the day on October 13, 2023, and will be available for trading with effect from October 16, 2023," said BSE, noting that the decision was based on market feedback.

The expiry of Sensex derivatives contracts will continue to be on Friday. The exchange had chosen Friday as the expiry day for its relaunched Sensex and Bankex futures and options (F&O) contracts to differentiate from market leader NSE.

The traded value of Bankex on the previous weekly expiry on August 25 stood at Rs 4 crore, up from Rs 1.7 crore a week earlier.

Over the past two months, NSE and BSE have been staggering the expiry days for their popular derivatives products throughout the week to increase volumes.

As traders tend to be more active on expiry days, the move is expected to boost volumes. The exchanges had earlier stated that the shift aims for balanced market development and the avoidance of concentration risk.

NSE's Nifty50— the most traded among all derivatives indices—expires on Thursday, while the second most popular contract, Bank Nifty, will have its expiry moved to Wednesday from September 6. It currently expires on Thursday. Meanwhile, Nifty Financial Services (Fin Nifty) derivatives contracts expire on Tuesday.

NSE had earlier planned to switch Bank Nifty expiry to Friday, the same as the current expiry schedule for BSE's Bankex, but later rescinded the move.

In July, the average daily turnover (ADTV) for NSE's F&O segment stood at Rs 303 trillion, a month-on-month growth of 17 per cent. BSE's ADTV for the derivatives segment stood at Rs 4.4 trillion, which is 4.4 times greater than the preceding month.

Market observers note that BSE's success in the derivatives segment has been due to market expansion rather than capturing NSE's market share.

Gift Nifty turnover touches $13 billion

GIFT Nifty, formerly known as SGX Nifty, recorded an all-time high single day turnover of $12.98 billion on August 29, with over 336,000 contracts getting traded. The contracts, which were earlier traded on the Singapore Exchange, were moved to the GIFT City IFSC under a connect programme from July 3. “Since the first day of full-scaleoperations, GIFT Nifty has witnessed a total volume of over 2.94 million contracts with total cumulative turnover of $113.73 billion,” said the exchange. BS REPORTER