Â鶹´«Ã½

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
≔ Menu
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. HomeRegulation news
  2. ESMA withdraws third-country recognition from six Indian CCPs
Regulation news

ESMA withdraws third-country recognition from six Indian CCPs


02 November 2022 EU
Reporter: SFT

Generic business image for news article
Image: AdobeStock/bakhtiarzein
The European Â鶹´«Ã½ and Markets Authority (ESMA) will withdraw third-country CCP recognition of six Indian central counterparties under the European Market Infrastructure Regulation (EMIR), with this decision taking effect from 30 April 2023.

These are the Clearing Corporation of India (CCIL), the Indian Clearing Corporation Ltd (ICCL), NSE Clearing Ltd (NSCLL), the Multi Commodity Exchange Clearing (MCXCCL), the India International Clearing Corporation (IFSC) and the NSE IFSC Clearing Corporation Ltd (NICCL)

Under the terms of EMIR, ESMA was required to tier and review the recognition status of all third-country CCPs that received recognition before 21 September 2002.

On the basis of its assessment, the European securities market regulator concluded that the cumulative conditions for recognising these third-country CCPs under EMIR have not been met since no cooperation agreements have been established between ESMA and the relevant Indian market authorities in accordance with EMIR Article 25(7).

These regulatory authorities are specifically the Reserve Bank of India (RBI, which supervises CCIL), the Â鶹´«Ã½ and Exchange Board of India (SEBI, which supervises ICCL, NSCCL and MCXCCL) and the Indian Financial Centre Services Authority (IFCSA, which supervises IFSC and NICCL).

As a result of this decision, which was finalised on 31 October, these six third-country CCPs will no longer be authorised to provide services to clearing and members and trading venues established in the European Union.

ESMA will defer the application of these withdrawal decisions until 30 April 2023, indicating that it wishes to minimise any adverse impact that this may have on EU market participants.

Currently, , established in a country outside of the EU, have been recognised to offer services and activities within the Union.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Â鶹´«Ã½ Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Default

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →