NSE Expiry Day Revision: Should All Exchanges Have a Unified Expiry Date?

The National Stock Exchange (NSE) has moved the expiry date of the expiry of Nifty weekly contracts by a day from Thursday. Sriram Krishnan, the Chief of Business Development at NSE explained, "The rationale for this choice is to reflect the reality that there is a lot of geopolitical developments, events during the weekend, and that Monday is an ideal day to have to expire."

"If we believe there is an abundance of speculation about weekly expiry dates the answer is in controlling the activity on expiry days. It should be a single day of expiry for the entire market, all exchanges. I think this is the right approach. Maybe, it's the right time for the industry to think about the issue."

He said that the changes were motivated by efficiency and smoothness, not immediate gains in market share. NSE will continue to track feedback and revisit the decision in the event of a need.

The change will be in effect on April 4. In the moment, BSE has its contract expire on Tuesdays.

Anil Singhvi's perspective The reason for the NSE alter the expiry date?

According to Singhvi the change in the day of expiry could be a deliberate attempt by NSE to decrease competition. The BSE's Sensex weekly expiry volumes have been rising which has resulted in a revision of BSE's market price.

Impact on the market: What should traders be expecting?

• Impact on trading volume: With expiry falling on Mondays, traders could be able to observe volatility in the first part of the week trading instead of the midweek.
• Changes in liquidity: The shift could affect the patterns of liquidity, particularly in the case of Nifty Bank and Financial Services traders who depend on the midweek trends in expiry.
• BSE's response If BSE is able to follow suit by implementing changes to its expiry dates, it may be able to maintain its increasing shares of the derivatives market.