BSE currently runs two contracts linked to indices – BSE Sensex and BSE Bankex.

 

“BSE Sensex has much larger volumes as compared to Bankex.”

 

It makes sense to retain weekly expiry on the more active contract,” said one of the sources, declining to be identified as they were not authorised to speak to the media.

 

The exchange operator did not immediately reply to a Reuters email for comments.

 

The notional turnover for BSE’s index options in August stood at Rs 2,603 trillion.

 

As per exchange data, Sensex contributed to 85 per cent of the volumes in the financial year ended March 2024.

 

Jefferies said on Thursday it cut its earnings per share estimate for BSE by 10 per cent ‘assuming discontinuance of Bankex product and focus will remain on volume impact on continuing product (Sensex) post implementation of new regulations’.

 

Shares of BSE, which fell as much as 3 per cent in early trade, turned positive and were last up 8.3 per cent as Sebi’s final rules reduced expiry-day margins to 2 per cent compared to 8 per cent proposed earlier.

 

IIFL Securities in a note said it expects a 20 per cent hit on BSE volumes as compared to a 30 per cent-35 per cent impact on NSE.

 

NSE, the country’s largest exchange, has four weekly expiries linked to the Nifty, Bank Nifty, Fin Nifty and Nifty Mid-cap. The notional turnover for index options for NSE in August was Rs 7,768 trillion.

 

“Nifty and Bank Nifty are equally popular among traders. The exchange is canvassing feedback from traders before it decides on which weekly expiry to retain,” said a third person familiar with NSE’s thinking.

 

An email query sent to NSE spokesperson was not answered immediately.

 

According to IIFL Securities, NSE’s biggest contract is Bank Nifty, contributing 50 per cent of option premium volumes.

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Oct 03 2024 | 11:09 AM IST