BSE moves Bankex F&O expiry to Mondays from Fridays, effective October 16

Stock exchange BSE said on Wednesday that the expiry of the derivatives contracts in its Bankex index will be moved to Mondays, with effect from October 16. Currently, the futures and options derivative contracts of the banking index are due for expiry every Friday. 

The bourse said, in a notification, that the decision was made on the basis of feedback received from a diversified set of market participants.

BSE also said that all the existing contracts of the S&P BSE Bankex with the expiry due on a Friday will expire at the end of the day on October 13, 2023, and such contracts will not be available for trading with effect from October 16, 2023.

The new contracts of the index, with a Monday expiry, will also be generated at the end of the trading day on October 13, 2023, and, therefore, will be available with effect from October 16, 2023.

The development follows a similar move by rival exchange NSE, which announced its decision last month to revise the expiry day for the derivative contracts of its Nifty Bank index to Wednesday from Thursday. Those changes are due to take effect from September 6, 2023.

What happens in case the new expiry day falls on a public holiday?

Currently, the expiry of all derivative contracts trading on domestic exchanges is shifted to the previous trading day in case the date as per the original schedule falls on a market holiday.

The same rule will be applicable to the new expiry day for the Bankex as well, according to the BSE notification.   

Difference between Bankex and Nifty Bank

The S&P BSE Bankex index has 10 constituents: HDFC Bank, SBI, Axis Bank, ICICI Bank, Bank of Baroda, Federal Bank, Canara Bank, AU Small Finance Bank, IndusInd Bank and Kotak Mahindra Bank. 

NSE's Nifty Bank contains all the stocks that are part of the Bankex index except Canara Bank, and has three additional stocks: Bandhan Bank, IDFC First Bank and Punjab National Bank (PNB).

Traditionally, the Nifty Bank is a fare more traded banking index than the Bankex.

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