Sensex, Bankex derivative contracts witness record Rs 528 crore turnover

BSE said on Friday that its newly relaunched Sensex and Bankex derivative contracts saw a record turnover of Rs 528 crore in its first weekly close on the exchange.

The exchange said in a statement that futures had turnover of Rs.35 crore and options had a turnover of Rs.493 crore.

It added that the recently relaunched S&P BSE Sensex and S&P BSE Bankex derivative contracts posted sales of Rs 528 crore in its first weekly close on BSE.

Since its launch, BSE has seen a steady increase in turnover and open interest in these contracts, which uniquely expire on a Friday. These contracts saw wider participation with more than 125 members across India, according to the release.

On Monday, the Bahrain Stock Exchange re-launched Sensex and Bankex derivatives contracts in its bid to boost derivatives trading on the country’s main exchange.

The relaunch of derivative contracts comes with a reduction in lot size for futures and options and a new expiration cycle on Friday versus earlier Thursday.

Derivatives are high risk and rewarding financial instruments intended to hedge risk in the stock market.

BSE launched Sensex-30 Derivatives (Options and Futures) for the first time in 2000. Sensex-30 Derivatives consists of 30 of the largest and most publicly traded companies.