“All the existing contracts of S&P BSE BANKEX with expiry day as Friday will expire on October 13, 2023 end of day and will not be available for trading w.e.f October 16, 2023. 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 w.e.f October 16,2023,” BSE said.
In case the expiry day is falling on a trading holiday, then the previous trading day will be treated as the expiry day.
BSE said the decision was taken based on the feedback received from diversified set of market participants.
BSE has been trying to break the monopoly of NSE in the derivatives market by relaunching Sensex and Bankex derivatives. Comprising a group of India’s 10 largest banks based on market capitalisation, BSE Bankex derivatives compete with NSE’s Nifty.
Last month, the NSE announced that with effect from September 4, Nifty Bank weekly index options will expire every Wednesday instead of Thursday.
The first Wednesday weekly expiry for Nifty Bank will be on September 6. For monthly and quarterly contracts of the widely-tracked banking index, there is no change, and will continue to expire on the last Thursday of the expiry month.BSE’s shifting of Bankex expiry day will mean that derivative contracts of both of its indices – Sensex and Bankex – will not happen on the last trading day of the week which is Friday.
Market data shows that India’s one-player derivative exchange market is seeing nascent signs of competition with BSE gaining a 5% volume market share in index options and 15% share on like-for-like expiry days.
“While volumes are almost fully driven by weekly Sensex options currently, BSE’s market share in overall index options (in contracts traded) has improved from almost zero in June 2023 to nearly 4-5% in August 2023.
Market share is nearly 15% if we compare the volumes on respective expiry dates. Volume growth this time is without a liquidity enhancement scheme,” Kotal Equities said. In the June quarter, BSE earned Rs 25 crore as transaction charges from the equity derivatives segment. Shares of BSE, which is listed on NSE, rallied 7% to hit a fresh 52-week high of Rs 975 today.
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