Bombay Stock Exchange (BSE) has decided to take a 15% stake in United Stock Exchange (USE). USE, which will operate as a BSE Group company, now brings together a consortium of key stakeholders – the exchange, banks, financial institutions – to drive the development and growth of the currency and interest rate derivatives markets.
USE’s efforts will be focused on increasing the participants in this market, as well as the liquidity and the range of tradable products. USE has said that with prior regulatory approval, it will also launch interest rate futures. The new products are expected to be launched in the coming years to help market participants manage their interest rate risks.
Jagdish Capoor, chairman of BSE, said: Events in recent years have demonstrated the desirability of exchange traded products. We at BSE are committed to working with regulators and market participants to forge the development of trading platforms that facilitate price discovery in a transparent manner. We are happy to be joining hands with the largest banks, end-users and trading entities to drive development of this market.
TS Narayanasami, managing director & CEO of USE, commented: By partnering with India’s premier exchange, we will significantly strengthen our offering and broaden our reach. BSE has an established regulatory structure, and strong distribution and exchange technology that will help us accelerate our plans to be a dominant player in the currency and interest rate derivatives market in India.
Madhu Kannan, managing director & CEO of BSE, said: BSE’s commitment to thought-leadership, innovation and our belief in the consortium model as a powerful approach for long-term market development were the key factors to enter into this relationship. The BSE Group will work with all the different constituents to drive product and market development in currency and interest rate derivatives markets.
The United Stock Exchange of India Limited (USE) is India’s latest stock exchange for trading in financial derivatives. The exchange is a Public-Private partnership with equity investments by both PSUs and the private sector.
