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.
“All weekly contracts shall expire on Wednesday of every week excluding the expiry week of the monthly contract. If Wednesday is a trading holiday, then the expiry day is the previous trading day,” NSE said in a circular.
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.
“There is no change in trading cycle i.e Nifty Bank will continue to have 4 weekly expiration contracts (excluding monthly contracts), 3 monthly expiration contracts and 3 quarterly expiries (March, June, Sept & Dec cycle),” NSE said.
The split in expiry days of weekly and monthly contracts would mean that in September, the first three expiries would be on Wednesday and the last one (monthly) would be on Thursday.
In recent weeks, this is the second time that the NSE has announced a change in the expiry date of Nifty Bank derivative contracts. Earlier, the bourse had plans to shift the dates to Friday but as it would have clashed with BSE’s Sensex and Bankex derivatives contracts, the plan was scrapped.To avoid a clash with the Nifty Midcap Select index, the derivative contracts of which also expire on Wednesdays, the NSE has shifted both its weekly and monthly contracts to Mondays.
The first Monday expiry for the midcap index will be on August 21, 2023. If Monday is a trading holiday, then the expiry day is the previous trading day.
The reshuffle in expiry days means that derivative traders will have to deal with an expiry day on every weekday. Mondays will begin with Nifty Midcap Select, on Tuesdays we already have FinNifty, Wednesdays will now have Nifty Bank while Thursdays are already reserved for India’s most popular index – Nifty. On the last trading day – Friday – BSE’s relaunched Sensex and Bankex derivatives will expire.