United Stock Exchange of India
Encyclopedia
The United Stock Exchange of India (USE) is an Indian stock exchange
. It is the fourth pan India exchange to be launched for trading financial instruments in India over the last 140 years.
USE has received final approval from the market regulator SEBI to start currency futures trading. USE represents the commitment of ALL 21 Indian public sector banks, private banks and corporate houses to build an institution of standing.
USE also has Bombay Stock Exchange as a strategic partner.
Public Sector Banks that are stakeholders of USE include Allahabad Bank, Corporation Bank, Punjab National Bank, Andhra Bank, Dena Bank, State Bank of India, Bank of Baroda, IDBI Bank, Syndicate Bank, Bank of India, Indian Bank, UCO Bank, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Canara Bank, Oriental Bank of Commerce, United Bank of India, Central Bank of India, Punjab and Sind Bank, Vijaya Bank.
Private Sector Banks like Axis Bank, Federal Bank, J & K Bank, HDFC Bank. Corporate Institutions such as Jaypee Capital, MMTC and India Potash are also associated with United Stock Exchange.
USE launched its operations on 20 Sept 2010.
There would be 12 contracts i.e. one for each of the next 12 months in each of the above currency pair
Outright contracts as well as calendar spread contracts are available in each pair for trading.
The contract specifications are mentioned in the table
USE also started trading in currency options in 2011 and became the second Indian exchange to trade in currency options. Currency options contracts have been allowed in USD-INR only by the regulator.
Two types of membership is available with USE
USE is now open to membership, details available on Membership Details
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
. It is the fourth pan India exchange to be launched for trading financial instruments in India over the last 140 years.
USE has received final approval from the market regulator SEBI to start currency futures trading. USE represents the commitment of ALL 21 Indian public sector banks, private banks and corporate houses to build an institution of standing.
USE also has Bombay Stock Exchange as a strategic partner.
Public Sector Banks that are stakeholders of USE include Allahabad Bank, Corporation Bank, Punjab National Bank, Andhra Bank, Dena Bank, State Bank of India, Bank of Baroda, IDBI Bank, Syndicate Bank, Bank of India, Indian Bank, UCO Bank, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Canara Bank, Oriental Bank of Commerce, United Bank of India, Central Bank of India, Punjab and Sind Bank, Vijaya Bank.
Private Sector Banks like Axis Bank, Federal Bank, J & K Bank, HDFC Bank. Corporate Institutions such as Jaypee Capital, MMTC and India Potash are also associated with United Stock Exchange.
USE launched its operations on 20 Sept 2010.
Products and services
USE began operations in the future contracts in each of the following currency pairs:- United States Dollar-Indian Rupee (USD-INR)
- Euro-Indian Rupee (EUR-INR)
- Pound Sterling-Indian Rupee (GBP-INR)
- Japanese Yen-Indian Rupee (JPY-INR)
There would be 12 contracts i.e. one for each of the next 12 months in each of the above currency pair
Outright contracts as well as calendar spread contracts are available in each pair for trading.
The contract specifications are mentioned in the table
| Underlying | USD-INR | EUR-INR | GBP-INR | JPY-INR |
|---|---|---|---|---|
| Trading Hours | 9:00am to 5:00pm | 9:00am to 5:00pm | 9:00am to 5:00pm | 9:00am to 5:00pm |
| Contract Size | $1000 | EUR1000 | GBP1000 | JPY100000 |
| Available Contracts | All monthly maturities from 1–12 months | All monthly maturities from 1–12 months | All monthly maturities from 1–12 months | All monthly maturities from 1–12 months |
| Initial Margin | SPAN based margin system with a minimum of 1.75% on the first day of trading and 1% thereafter 3.5 Std Dev of price range | SPAN based margin system with a minimum of 2.8% on the first day of trading and 2% thereafter. 3.5 Std Dev of price range | SPAN based margin system with a minimum of 3.2% on the first day of trading and 2% thereafter. 3.5 Std Dev of price range | SPAN based margin system with a minimum of 4.5% on the first day of trading and 2.3% . 3.5 Std Dev of price range |
| Calendar Spread Margin | 1 month – Rs 400,2 months – Rs 500,3 months – Rs 800,> 4months – Rs 1000 | 1 month – Rs 700,2 months – Rs 1000,>3 months – Rs 1500 | 1 month – Rs 1500,2 months – Rs 1800,>3 months – Rs 2000 | 1 month – Rs 600,2 months – Rs 1000,> 3 months – Rs 1500 |
USE also started trading in currency options in 2011 and became the second Indian exchange to trade in currency options. Currency options contracts have been allowed in USD-INR only by the regulator.
Membership
All transactions on USE must be carried out through registered members. All non-member participants can access the exchange as clients of members. Membership is therefore granted to market participants with high credibility and an excellent track record. Members will need to meet all requirements prescribed by the Securities Exchange Board of India (SEBI) as also the requirements stipulated by USE itself. This is to ensure that traders are protected against any counterparty risk and also to help develop and build market confidence.Two types of membership is available with USE
- Trading Membership: Trading Member has the privilege of trading on one’s own account as well as the accounts of their clients. However, they will not be able to clear and settle these trades.
- Clearing Membership: Clearing Members are entitled to clear and settle trades for all trading members through the Clearing House of USE, ICCL.
USE is now open to membership, details available on Membership Details