The United Stock Exchange of India Limited (USE) has received final approval from the Securities and Exchange Board of India (SEBI) to commence operations in currency futures in all the four pairs of currencies, i.e. US Dollar - INR; EUR - INR ; Pound Sterling - INR; Japanese Yen - INR.
In light of this approval, Bombay Stock Exchange Limited (BSE), the largest shareholder in USE, has officially suspended its operations in the Currency Derivatives Segment.
Following SEBI approval, USE has vigorously launched its membership drive and over 150 members have already submitted their applications. Most of the members of BSE are expected to join USE. In addition, new members from the banking fraternity and broking field have evinced keen interest in the new exchange.
According to T. S. Narayanasami, Managing Director & CEO of USE: "USE's membership drive is in full swing, and we are very pleased to see spontaneous response from the banks which are natural partners of USE apart from the broking community. Trading Membership is initially free with nil transaction charges to begin with. It is envisaged that since almost the entire banking system are stakeholders, USE will gain significantly by the volumes traded by them on the exchange. Details on the membership process are placed on the website of USE, www.useindia.com. USE has tentatively planned to commence operations in June 2010."
Madhu Kannan, MD and CEO of the BSE, added: "The currency derivatives market in India has enormous potential for continued growth in the next few years. We expect USE to compete well in this growing market on the basis of product innovation, the training and development of new participants, and strong leadership."