BSE to Shift Bankex Expiry from Fridays to Mondays

The Bombay Stock Exchange (BSE) Bankex derivatives contracts expiry will be revised to Monday, effective October 16, 2023.

At present, the S&P BSE Bankex contract expires on every Friday. However, this will not apply to any of the existing contracts.

The new contracts of S&P Bankex with expiry on Monday will be generated on October 13, 2023, after the close of trading and will be available for trading on October 16, 2023.

However, it is essential to note that the expiry of the Sensex derivative contracts remains unchanged. They continue to expire on Friday as usual. The change is associated with the BSE Bankex derivative contracts.

In July 2023, the National Stock Exchange (NSE) announced that the Nifty Bank’s weekly options contract expiry will move from Thursday to Wednesday. This change was supposed to be implemented from September 1, 2023. The decision was later reversed, however.

On May 15, 2023, BSE Ltd made an effort to revive its derivatives segment. The stock exchange introduced the Sensex and Bankex futures and options (F&O) contracts with reduced lot sizes along with different expiry dates.

Sensex contracts have been steadily gaining ground. As per the BSE, about 10 crore contracts of Sensex were traded for the first time on August 25, 2023, with a turnover of Rs 71.4 lakh crore. However, Bankex contracts have not been able to register similar success.
So, what will be the impact on traders with this shift from Friday to Monday? While it is a bit early to predict, but it will make the settlement task more spread out instead of concentrating all the pressure on a single day.

In addition, traders will get more choices and more coverage for market volatility, considering they have more options available at their disposal. However, the build-up of volumes will continue to remain an issue, and the more volumes the BSE builds up, the greater would be the choice that traders and market participants are likely to have.

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