BSE updates - BSE acquires 15 percent in USE

(under BSE Updates - 7-8-09) - Bombay Stock Exchange said on Friday it will acquire a 15 percent stake in United Stock Exchange (USE), which focuses on currency and interest rate derivatives.

USE plans to launch interest rate futures upon receiving regulatory approval, BSE said in a statement. "New products are expected to be launched in the coming years to help market participants manage their interest rate risks," the statement said.

"USE will provide an advanced trading platform for these products and will be an important driver of innovation in terms of product and market development," it added. State-run Punjab National Bank , Bank of Baroda and Union Bank of India are among the stakeholders in United Stock Exchange, which was set up with paid-up capital of 1.5 billion rupees.