United Stock Exchange to offer currency trading in Sep

The United Stock Exchange (USE) will start full fledged operations in currency futures latest by early September, a top official of the bourse has said.

"We will launch full fledged operations in the last week of August or by the first week of September this year," United Stock Exchange MD and CEO TS Narayanaswami told PTI today.

Finance Minister Pranab Mukherjee is expected to launch USE's currency futures trading, sources said.

USE, backed by the Asia's oldest bourse the Bombay Stock Exchange, has already started the mock trading, he said from Mumbai over phone.
    
The bourse got market regulator Sebi's nod for launching currency futures trading in March this year.
    
"We will launch trading in the all four currency pairs as allowed by the Sebi," Narayanaswami further said.
    
At present, currency futures contracts are allowed in the country in four foreign currencies against the Indian Rupee. The four foreign currencies are US Dollar, Sterling Pound, Japanese Yen and Euro.
    
Currency futures are transferable contracts that specify the price at which the currency can be bought or sold at a future date. Currency futures contracts allow investors to hedge against volatility in foreign exchange rates.
    
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.
    
In August 2008, Sebi had given its approval for currency derivatives in the form of currency futures in India.
    
RBI and Sebi jointly regulate these products. While RBI approves the products, Sebi decides on the trading platforms.