Creates world record with volume of Rs 42,481 crores in first session
The United Stock Exchange of India (USE) commenced operations in currency derivatives yesterday with 251 SEBI approved members and support from all 21 Indian public sector banks, leading private sector banks, public sector units and corporate institutions. Trading began in all four currency pairs currently allowed by the Securities and Exchange Board of India i.e. USD-INR, EURO-INR, JPY-INR, GBP-INR.
Incidentally, on the opening day itself the Exchange recorded a stupendous volume of Rs. 42,481 crore in the first session thus creating a world record of maximum volume on launch day by an exchange. Infact the USE is India’s newest stock exchange for currency derivatives. The exchange offers a better platform to corporates and SMEs for managing forex risk as spread rates in an exchange are better and it does not involve any counter party risk.
Speaking at the launch, SEBI Chairman C.B. Bhave while congratulating the exchange on the successful launch of its operations said, “I am very happy that USE is coming up with a diversified ownership and we look forward to the success of the exchange.” He along with Ms. Shyamala Gopinath Deputy Governor, Reserve Bank of India (RBI) rang the opening bell to kickstart trading on India’s newest exchange.
Speaking on the occasion, Ms Gopinath said, “Increasing competition in the exchange space will help the real sector in addressing their hedging requirements and getting competitive rates”. Both Bhave and Ms. Gopinath stressed on the fact that exchanges are important infrastructures and must serve their purpose.
Said T.S Narayanasami, MD & CEO, United Stock Exchange of India said, “We are extremely pleased to have commenced operations. On behalf of the exchange I would like to extend our gratitude to all our stakeholders for their valuable support in creating India’s newest stock exchange for currency derivatives. I would also like to express my deepest gratitude to both the regulators, SEBI and RBI for their continued guidance. We are confident that our distinctive model will help expand and deepen this financial segment in the country.”