FinNifty Options To Be Settled On Tuesdays; No Weekly FinNifty Futures From October 15

The NSE has changed the settlement day for its FinNifty (Nifty Financial Services Index) monthly and weekly derivative contracts from Thursday to Tuesday. All existing weekly and monthly FinNifty futures and options contracts will expire on Tuesday of every week and if Tuesday is a trading holiday, the expiry day will be on the previous trading day, NSE said in a circular. The Nifty, Bank Nifty and stock futures and options will continue to be settled on the last Thursday of every month, as is the prevailing norm.

The NSE has also decided to terminate trading in weekly FinNifty futures. "Trading in weekly index futures of FinNifty contracts shall be discontinued. Accordingly, no new FinNifty weekly index futures shall be introduced from October 14, 2021 (end of the day)," NSE said in a circular on Wednesday. Existing FinNifty Weekly futures contracts created till October 14, 2021, will be available for trading till their expiry dates. The weekly FinNifty options contracts will be available for trading as usual.

According to experts, the new FinNifty contract settlement rules may lead to confusion in trading as Nifty and Bank Nifty contracts will be settled on Thusday, whereas the FinNifty contracts will end on Tuesdays.

Futures and options are derivatives products, which means that the value of these products is derived from the value of the underlying index and stock, as the case may be.