India's BSE to discontinue weekly options linked to Bankex after new derivatives rules
Updates with BSE's notice in paragraph 1
By Jayshree P Upadhyay
MUMBAI, Oct 3 (Reuters) -India's BSE BSEL.NS said it will discontinue weekly derivative contracts linked to Bankex .BSEBANK and Sensex 50, indicating the stock exchange operator will retain only contracts linked with its benchmark BSE Sensex, an index of 30 bluechip stocks.
The move follows the Securities and Exchange Board of India's order on Tuesday that requires exchanges to cut down the number of weekly options contracts available to investors to one from Nov. 20.
The new rules were put in place to curb the recent spurt in retail investors trading options, which the regulator and the government view as a risk to household finances.
A SEBI study showed that individual traders made net losses totalling 1.81 trillion rupees ($21.57 billion) in futures and options in the three years to March 2024, with only 7.2% making a profit.
Reuters reported earlier in the day, citing sources, that BSE would continue weekly derivatives linked to the BSE Sensex index due to its higher trading volumes.
"BSE Sensex has much larger volumes as compared to Bankex. It makes sense to retain weekly expiry on the more active contract," one of the sources had told Reuters.
As per exchange data, BSE Sensex contributed to 85% of derivatives trading volumes in the financial year ended March 2024.
The notional turnover for BSE's index options, including all three - Bankex, Sensex 50 and BSE Sensex - stood at 2,603 trillion rupees in August.
Bankex is the benchmark index of 10 banking companies listed on the BSE, and Sensex 50 is the index of top 50 companies on the stock exchange.
Shares of the BSE, which fell as much as 3% in early trading, settled 2.5% higher as SEBI's final rules reduced expiry-day margins to 2% compared to 8% proposed earlier.
The NSE, India's largest stock exchange, which has four weekly options linked to the Nifty .NSEI, Bank Nifty .NSEBANK, Fin Nifty and Nifty Mid-cap, is yet to make an announcement regarding which options it wants to retain.
The notional turnover for index options for the NSE was 7,768 trillion rupees in August.
"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 person familiar with NSE's thinking.
NSE did not respond to a Reuters request for comment.
According to brokerage firm IIFL Securities, NSE's biggest contract is Bank Nifty, contributing 50% of option premium volumes.
($1 = 83.9160 Indian rupees)
Reporting by Jayshree P Upadhyay; Editing by Varun H K and Shinjini Ganguli
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
