BSE vs NSE: Battle of Options Trading Intensifies
The rivalry between two stock exchanges is set to become intense as National Stock Exchange (NSE) shifted the expiry day for its weekly Nifty options contract to Monday from Thursday, starting from 4 April.
BSE vs NSE: Battle of Options Trading Intensifies
The rivalry between two stock exchanges is set to become intense as National Stock Exchange (NSE) shifted the expiry day for its weekly Nifty options contract to Monday from Thursday, starting from 4 April.
As per a circular by NSE during post-market hours of March 5, BSE shares fell by 5% to ₹4,230, while benchmark indices gained by 1%.
Rajesh Palviya , senior vice president, derivatives and technical research, at Axis Securities said, “The change of expiry day will hot up the competition between the rival bourses.”
A broking official said, “Sensex weekly volumes spike on Monday and Tuesday as traders wanting to play close to expiry build up volumes on those days.”
“This move will impact the BSE Sensex weekly volumes on the two days.”
Notably, BSE is far behind NSE as Sensex weekly options have gained popularity in recent years. BSE’s market share (based on average daily derivatives turnover on a notional basis) jumped from less than 1% in FY23 to 26% this fiscal, while the rest is handled by NSE.
