The Bombay Stock Exchange (BSE) saw its shares decline by 8% after the National Stock Exchange (NSE) announced a key structural change in the derivatives market. Effective April 4, 2025, NSE will shift the expiry of all Futures & Options (F&O) contracts from Thursday to Monday;As of 9.29 Am Shares of BSE down 8% trading at ₹4,120 

Impact on BSE

The move is expected to strengthen NSE’s hold on the derivatives market, as it already dominates the segment. BSE, which has been trying to gain market share in the F&O space, may see reduced trading activity, leading to investor concerns reflected in the stock’s sharp decline.

Why Is NSE Changing the Expiry?

NSE’s decision to shift expiry dates aims to:

Reduce concentration of trading volume on Thursdays, easing market volatility.

Improve liquidity and efficiency in F&O trading.

Align with global markets where expiries are more spread out across the week.

Market Reaction

Following the announcement, BSE shares tanked 8% in intraday trade as traders and investors assessed the impact of losing a competitive edge in derivatives trading. Many market participants see this as another step toward NSE consolidating its leadership, making it tougher for BSE to attract derivatives traders

Will BSE Counter the Move?

BSE has been making aggressive attempts to capture F&O market share, including introducing zero-brokerage options. However, with NSE’s latest move, BSE may need to rethink its strategy or introduce fresh incentives to keep traders engaged.

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