The National Stock Exchange, Multi Commodity Exchange and Bombay Stock Exchange will soon have one more competitor in the currency derivatives segment with the newly promoted United Stock Exchange of India all set to launch trading operations over the next 10 weeks.

USEIL, promoted by 11 banks, MMTC, and a large brokerage firm Jaypee Capital has received in princial approval from Sebi for commencing contracts in currency derivatives.

Top officials briefing the media said today the exact shareholding pattern is still being worked out. Currently, Sebi norms do not allow one entity to hold more than five per cent equity. But a relaxation in this norm is granted for a short period and four entities, namely, Bank of India [Get Quote], Federal Bank [Get Quote], MMTC and Jaypee Capital would hold more than five per cent each to start with. The paid up capital of the new exchange will be Rs 120 crore (Rs 1.2 billion).

T S Narayanaswami, CMD of Bank of India said, "The background of promoters places the exchange in an ideal position to build liquidity quickly and handhold smaller participants in benefitting from the exchange platforms."

Trading in currency derivatives which started in August last year has taken off nicely with daily volumes now hitting the Rs 2,000 crore (Rs 20 billion) mark.