Thursdays are now synonymous with the trading expiry day. But not anymore, at least for the BANK NIFTY derivatives. The NSE in the latest circular NSE/FAOP/56967 dated 6th June 2023 has revised the expiry date for NIFTY BANK expiry of Futures & Options contract.
From 14 July 2023, all the BANKNIFTY contracts will expire on FRIDAY.
To note, all the BANKNIFTY contracts expiring on or before 6th July 2023 will have the same expiry days as earlier i.e. Thursdays. The changes will be applicable on contracts expiring from 14 July, 2023.
With this, the traders will have 4 Expiry days in a week-
Tuesdays - FINNIFTY
Wednesdays - NIFTY MIDCAP SELECT
Thursdays - NIFTY
Fridays - BANK NIFTY
Let us know your views. Do you think changing the expiry day will help you in trading?
Yes more capital can be deployed to drive OTM prices to zero… . Besides I had started currency option selling last week which also falls on Fridays. Now currency will have to share with BN but as currency option margin requirements are less, it should be ok.
I am also curious to know, how traders will decide between choosing Sensex, Bankex and BankNifty expiry to trade on.
Wherever there is more premium to eat along with liquidity, traders are going to flock towards that. Besides those who have been trading BN for a very long time may keep trading with it.
I’m glad the exchange had made the necessary revisions because the Tuesday expiry was somewhat inconvenient.
Retailers may now take extended weekends off and spend time with their families instead of burning their hands and emotions with expiration day illogical moves.
Thursday, Friday, Saturday, Sunday, family time and long weekend breaks. Nice.
The National Stock Exchange of India Limited (NSE) has decided to reverse its decision to shift the expiry day for Nifty Bank Future & Options (F&O) contracts from Thursday to Friday, starting from July 7, 2023.
BSE, after considering market feedback, believes that this change could potentially impact the growth of Sensex/Bankex derivatives. To ensure balanced market development and mitigate concentration risk, BSE has requested NSE to reconsider the shift of Bank Nifty expiry to a day other than Friday. This adjustment would contribute to the growth of complementary Sensex/Bankex derivatives and enhance market stability.
Consequently, NSE, in the interest of market development, has decided to withdraw the proposed shift of BANKNIFTY Expiry to Friday.
Link to the joint press release: https://static.nseindia.com/s3fs-public/2023-06/PR_cc_27062023%20_0.pdf