Last updated: August 30, 2023, 2:22 PM IST
The due date for BSE Bankex derivatives contracts would be revised to Monday, effective October 16, the Bombay Stock Exchange said in an August 30 circular.
The existing expiration date of Bankex contracts is Friday.
“New S&P BSE Bankex contracts due on Monday will be generated at the end of the day on October 13, 2023 and will be available for trading from October 16, 2023,” the exchange said.
There is no change to the expiration date of Sensex derivative contracts. They expire on Friday.
As a reminder, BSE had relaunched Sensex and Bankex derivatives contracts in May this year in an effort to boost derivatives trading on the exchange. The relaunch of derivatives contracts was accompanied by a smaller lot size of futures and options and a new Friday expiration cycle compared to earlier Thursday.
Derivatives are the type of financial contracts whose value depends on an underlying asset, group of assets or benchmark. A derivative is placed between two or more parties that can trade on an exchange or over the counter (OTC). Derivatives are typically leveraged instruments, increasing their potential risk and reward. Usually they are used to hedge the risk of the assets in the stock markets.
If the due date falls on a trading holiday, it will be on the preceding trading day, the exchange clarified, adding that the decision to move Bankex’s expiration was made based on feedback received from a “diversified group of market participants.”
What does it mean for traders?
As of October 16, traders are staring at the following weekly M&O expiration schedule: Monday – Nifty Midcap Select and BSE Bankex; Tuesday – Convenient Financial Services; Wednesday – Bank Nifty; Thursday – Nifty 50 and Friday – Sensex.
Currently, Nifty Bank contracts expire on Thursday, but starting September 6, their weekly expiration date will be on Wednesday. However, Nifty Bank’s monthly F&O contracts still expire on Thursday, NSE announced on July 12.
