MSEI SX40 weekly expiry - game changer?

chethan

User: SX40_Options_Trader
Subject: MSEI SX40 weekly expiry - game changer?
MSEI started SX40 index options with Friday expiry from January 2025. Will this attract traders away from NSE? What are the differences between Nifty and SX40?

chethan

Reply by: Derivatives_Expert
MSEI moved contract expiries to Fridays starting January 2025 and increased lot size to 40 units to meet SEBI's minimum contract value norms. Problem is liquidity is still very low. Despite these efforts, MSEI has seen little trading activity so far. Without market makers and liquidity, spreads will be wide and difficult to trade.

chethan

Reply by: Weekly_Options_Fan
I tried trading SX40 options last week. Bid ask spread was huge like 5-10 rupees. No point trading when you lose so much in spread. Unless volumes pick up significantly this wont work. NSE has years of liquidity and trust, MSEI cant compete overnight.

chethan

Reply by: Optimistic_About_Future
Give it time guys. When NSE started everyone said same thing. With investments from Groww and Zerodha who have huge retail client base, they can direct some flow to MSEI. If even 5% of weekly options volume shifts to MSEI it will be big for the exchange. Let's watch for next 6 months before judging.