BSE moves Bankex expiry to Monday from Friday, effective October 16

BSE had announced the relaunch of Bankex and Sensex derivatives contracts on May 15.

The expiry day of S&P BSE Bankex derivatives contracts will 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.

Meanwhile, the expiry day of Sensex derivative contracts has not been changed from Friday.

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If expiry day is falling on trading holiday then it will be on previous trading day, the exchange clarified, adding that the decision to shift Bankex expiry was taken based on the feedback received from '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.

Traction in BSE derivative volumes

India’s oldest stock exchange —BSE Ltd — made a fresh attempt to revive its derivatives segment on May 15. It brought back the Sensex and Bankex futures and options contracts with reduced lot sizes and different expiry dates.

Since then, Sensex contracts have slowly and steadily gained traction. On August 25, over 10 crore contracts of Sensex were traded for the first time, said BSE, indicating a turnover of Rs 71.4 lakh crore. Meanwhile, Bankex contracts have not pick up.

Some traders took to X to laud BSE's move. "Good step by BSE India to move Bankex to Mondays. No volume yet so only way is up from here. FnO space will pick up for BSE soon," wrote a user.