Banks queue up to become clearing and settlement banks for USe

United Stock Exchange appoints Allahabad Bank, Andhra Bank, Bank of India , Federal Bank, HDFC Bank and YES Bank as Clearing and Settlement banks

United Stock Exchange of India (USE), India’s newest stock exchange for currency derivatives announced today that Allahabad Bank, Andhra Bank, Bank of India , Federal Bank, HDFC Bank and YES Bank have been appointed as its Clearing and Settlement Banks.

On signing the agreement today, Mr. T.S. Narayansami, MD & CEO of United Stock Exchange said, “Clearing Banks perform an extremely important function in the operation of exchanges. We are extremely pleased to have these reputed banks on board.  They already have a very active and large base for their clearing services. Their nation-wide infrastructure and proficient operations will provide seamless electronic fund transfer and settlement processing services to USE members. We are in touch with more banks to make them our clearing banks to ensure ease of operations to our members when we launch.”

In addition to these six banks, five more banks are expected to come on board as clearing and settlement banks.

The announcement comes close on the heels of a number of developments on the Exchange, including receiving RBI authorization to launch operations, commencement of mock trading, pan India member training workshops amongst other things.

About United Stock Exchange
The United Stock Exchange of India Limited (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.

USE has a unique Public-Private partnership with equity participation by Public Sector banks, Public Sector Units, private sector banks and corporate institutions. All 21 Indian public sector banks which have participated in the formation of United Stock Exchange with an equity participation include Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab and Sind Bank, Punjab National Bank, State Bank of India, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, Vijaya Bank. In addition to public sector banks another 4 private sector banks have also an equity participation in USE, they include Axis Bank, Federal Bank, HDFC Bank and J&K Bank.

Apart from banks, Jaypee Capital, MMTC and Indian Potash have also participated in the formation of United Stock Exchange with an equity participation. Bombay Stock Exchange is also a strategic partner with USE as it holds a 15% stake and most of its members are connected to the new USE Platform.