BSE, USE set to part on 'divergence of interests'

Exchanges set to terminates shareholder agreement ahead BSE's currency derivatives segment launch

The BSE has terminated its shareholder agreement with the United Stock Exchange (USE) following a divergence of interests, a BSE official said on the sidelines of an event announcing BSE’s maiden foray into currency and interest-rate derivatives.

"We had some shareholder pacts with USE where each party had some rights and obligations. There was some thaw since the USE did not want to honour some obligations."

The BSE owns 15 per cent stake in the USE. Earlier in the year, the USE had applied for a debt-trading platform and was reportedly  looking to start its equity platform, in violation of the non-compete pact.

USE currently only trades in the currency derivatives segment.

However, the official clarified that BSE was in no hurry to sell its stake in the new exchange. "As of now, we are not looking to sell the stake. But if they are looking for someone, then we will sell it," the official added.

 

BSE, which is the technology provider for USE, will continue providing the operational and maintenance services till March 2014. "They have indicated that they want us to continue. After that, they may look at other partners."

 

In currency derivatives segment, BSE will offer trading in contracts like US Dollar-Indian Rupee (USD-INR), Euro-Indian Rupee (EUR-INR), British pound-Indian Rupee (GBP-INR) and Japanese Yen- Indian Rupee (JPY-INR), while USD- INR in currency options segment.