Triple Witching Meets Central Banks: A Convergence of Market Forces
On September 18, 2026, a unique convergence of events will take place in the financial markets. The quarterly expiration of equity index futures, known as triple witching, coincides with the Federal Reserve's interest rate hike on September 16 and the Bank of Japan's policy meeting on September 17-18.
The timing is unusual because it places futures rolls and expiring options into a market already adjusting to new rate expectations. According to Citadel Securities, $6.2 trillion of U.S. options exposure was scheduled to expire on September 18 as of August 27, representing about 23% of total U.S. options exposure.
The Fed's decision to raise the federal funds target range by 25 basis points to 3.75%-4.00% on September 16 may have already influenced market expectations, and the BOJ's policy meeting could further impact global rates and U.S. equity futures before the New York open.