NSE To Introduce 5 Securities in FNO Segment From 10 Sep 2014
Introduction of Futures & Options Contracts on 5 additional securities on NSE Download Ref No of NSE/FAOP/27549 dated 09 Sep 2014 and Circular Reference Number 064/2014. National Stock Exchange introduces new fno contracts in Derivatives segments based on the stock selection criteria to include in derivatives segments. Approval of SEBI is also required to be introduced in Derivatives segments.
Market Lots (Lot Size of FNO Contracts) of 5 New Futures Contracts
EICHER MOTORS LIMITED 125
MINDTREE LIMITED 250
MOTHERSON SUMI SYSTEMS LIMITED 1000
SKS MICROFINANCE LIMITED 1000
TVS MOTOR COMPANY LIMITED 2000
Options Strikes available on new futures contracts
Quantity freeze of new FNO Contracts to be introduced on NSE from 10 Sep 2014
EICHER MOTORS LIMITED 5000
MINDTREE LIMITED 37500
MOTHERSON SUMI SYSTEMS LIMITED 110000
SKS MICROFINANCE LIMITED 130000
TVS MOTOR COMPANY LIMITED 200000
Trading has already started on National Stock Exchange of India in these new futures contracts at the time of writing this article on 10 Sep 14. Trading volumes are very low which may cause high impact cost for futures traders.
For Example only 500 contracts traded in Eicher Motors by 11:45AM with outstanding open interest of 26500. Similarly in MindTree which is introduced for fno trading today, only 425 contracts are traded by this time. Options volume in mindtree is 120 for calls and NO Trade is recorded in puts by this time.
Traders must be cautious while trading in these new futures contracts as liquidity is a main concern in low traded contracts. Some of these stocks like Eicher Motors are high volatile stocks and as there is no historical data available for derivatives contracts of these stocks, one must trade cautiously in initial days.
With the introduction of these 5 additional new futures contracts in fno segment, total stocks available for trading are 150. McDowell will be excluded from derivatives trading from 19 Sep 2014 (Last trading day will be 18 Sep 2014). The exclusion of McDowell from FNO Segment is due non submission of financial results for the year ended March 31, 2014 and quarter ended June 30, 2014 as required under Clause 41 of the listing agreement.