Derivatives

All you wanted to know about FINNIFTY derivatives rejig

Gurumurthy K BL Research Bureau | Updated on September 18, 2021

The National Stock Exchange of India (NSE) had announced a couple of revisions in the Nifty Financial Services Index (FINNIFTY) derivatives contract. Firstly, the exchange has decided to discontinue the weekly index futures contracts of the FINNIFTY. Currently, the FINNIFTY contract has two expiry types - weekly and monthly. The weekly futures contract will be stopped from October 14. No new weekly contracts will be introduced after that. All existing contract till October 14 will continue to trade as usual. But, thereafter only the monthly expiry contracts will be available for trading.

The second change announced in the FINNIFTY derivatives contract is on their expiry day. Currently, the weekly contracts expire on all Thursdays. The monthly contracts in both the F&O segment have the last Thursday of the month as the expiry day. This has now been shifted to Tuesdays. So, all existing weekly contracts that will be traded till October 14 will now expire on the Tuesdays every week.

Similarly, the monthly contract will expire on the last Tuesday of the month. On October 14 all the expiries of the existing monthly contracts will be revised to the last Tuesdays of the respective month. These contracts with new expiry will be available for trading from October 18. If Tuesday is a holiday, then the contract will expire the previous trading day.

Apart from these, there are no changes in other specifications of the FINNIFTY contract.

Send your queries to derivatives@thehindu.co.in

Published on September 18, 2021

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