From October 16, Bankex derivatives expiry date to shift to Monday

The exchange had chosen Friday as the expiry day for its relaunched Sensex and Bankex futures and options contracts to differentiate from market leader NSE

From October 16, BSE will move the expiry day of Bankex futures and options contracts from Friday to Monday. The bourse had announced the change in a notice in August. The expiry of Sensex derivatives contracts will continue to be on Friday.

"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," the  BSE notice had read. It added that the decision was based on market feedback.

"All the existing contracts of S&P BSE Bankes with expiry day as Friday will expire on October 13, 2023 end of day and will not be available for trading with effect from October 16, 2023," it added.

 

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

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

NSE's Nifty50— the most traded among all derivatives indices—expires on Thursday, while the second most popular contract, Bank Nifty, now expires on Wednesday. Before September, it used to expire 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planned to switch Bank Nifty expiry to Friday, the same as the current expiry schedule for BSE's Bankex, but later rescinded the move.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.

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