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BSE changes Bankex expiry to Monday

Aug 31, 2023

By: BlinkX Research Team

The BSE has decided to change the expiry day of all futures and options contracts related to its banking index, S&P BSE Bankex. The new expiry day will be Monday, effective from October 16, 2023. If the scheduled expiry day falls on a trading holiday, the expiry day will be shifted to the previous trading day. This rule is meant to ensure that contracts expire on a valid trading day.

The change in the expiry day is based on feedback from various market participants. The decision aims to align the expiry schedule with market preferences and needs. The existing contracts for BSE Bankex that have their expiry day on Friday will expire on October 13, 2023. Starting from October 16, 2023, these contracts will no longer be available for trading. New contracts with Monday expiry will be generated on October 13, 2023, and trading for these new contracts will commence on October 16, 2023.

Weekly F&O expiry schedule that will be in effect from October 16. The expiry days for various indices are as follows:

  - Monday: Nifty Midcap Select and BSE Bankex

  - Tuesday: Nifty Financial Services

  - Wednesday: Bank Nifty

  - Thursday: Nifty 50

  - Friday: Sensex

Currently, Nifty Bank contracts expire on Thursday. However, starting from September 6, the weekly expiry for Nifty Bank will be moved to Wednesday. The monthly and quarterly F&O contracts for Nifty Bank will expire on the last Thursday of the respective expiry months. BSE's move to adjust the expiry schedule of its derivative contracts is part of its effort to enhance derivative trading activity. The exchange previously relaunched derivative contracts for Sensex and Bankex with reduced lot sizes and a new expiry cycle, which has gained momentum in the market.

The National Stock Exchange of India (NSE) is a major competitor in the derivatives market. Both BSE and NSE are engaged in efforts to attract traders to their respective platforms. There was a decision by NSE to change the expiry day of Bank Nifty F&O contracts to Friday from Thursday, but this decision was later reversed due to market considerations.

Source: Media Reports