Sebi okays USE to trade in currency options

The United Stock Exchange, which began operations last month, has received approval from the market regulator Securities and Exchange Board of India (Sebi) to start trading in currency options.

The exchange, backed by the Bombay Stock Exchange, has been allowed by the Sebi to commence trading in options on dollar-rupee pair, it said in a statement.

The market watchdog gave its approval on October 11, USE added.
   
At present, The USE offers trading in currency futures only.

Till now, no other exchange has started trading in the currency option segment. The National Stock Exchange and MCX-SX are other two dominant players in this segment.
   
On September 20, the exchange commenced future trading in in currency pairs of Dollar-Rupee, Euro-Rupee, Yen-Rupee and Pound-Rupee, allowed by the market regulator Sebi.

Worldwide, the currency derivatives market is bigger than the equities market.

Experts believe that there are greater prospects for growth in currency segment in India, which is a fraction of the size of the equity markets here.
   
The USE is promoted by 21 public sector banks, private banks and corporate houses. Its promoters include Allahabad Bank, Axis Bank, Canara Bank, HDFC Bank and Jaypee Capital.

The bourse got market regulator Sebi's nod for launching currency futures trading in March this year. BSE is also a strategic partner that holds 15 per cent stake in the USE, and all its members are connected to the USE platform.