The expiry day for BSE Bankex derivatives contracts would be revised to Monday effective October 16, the Bombay Stock Exchange said in a circular dated August 30.
The existing expiry day of Bankex contracts is Friday.
“New contracts of S&P BSE Bankex with Monday expiry will be generated on October 13, 2023 end of day and will be available for trading with effect from October 16, 2023,” the exchange said.
There is no change as far as the expiry day of Sensex derivative contracts are concerned. They expire on Fridays.
To recall, BSE had in May this year relaunched Sensex and Bankex derivative contracts in its bid to boost derivative trading at the exchange. The relaunch of derivative contracts had come with a reduced lot size of futures and options and a new expiry cycle of Friday from Thursday earlier.
Derivatives are the type of financial contracts whose value is dependent on an underlying asset, group of assets, or benchmark. A derivative is set between two or more parties that can trade on an exchange or over the counter (OTC). Derivatives are usually leveraged instruments, which increases their potential risk and reward. Usually, they are used to hedge against the risk against the assets in the equity markets.
If the expiry day falls on a trading holiday then it will be on the previous trading day, the exchange clarified, adding that the decision to shift Bankex expiry was taken based on the feedback received from a ‘diversified set of market participants’.
What it means for traders?
From October 16 onwards, traders are staring at the following weekly F&O expiry schedule: Monday – Nifty Midcap Select and BSE Bankex; Tuesday – Nifty Financial Services; Wednesday – Bank Nifty; Thursday – Nifty 50 and Friday – Sensex.
Currently, Nifty Bank contracts expire on Thursday but from September 6 onwards, their weekly expiry will be on Wednesday. However, Nifty Bank’s monthly F&O contracts will continue to expire on Thursday, as announced by NSE on July 12.
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