{"id":240890,"date":"2023-05-04T19:36:33","date_gmt":"2023-05-04T14:06:33","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=240890"},"modified":"2023-05-04T19:36:33","modified_gmt":"2023-05-04T14:06:33","slug":"derecognition-of-six-indian-central-counterparties-by-eu-regulator-what-will-be-the-impact","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/derecognition-of-six-indian-central-counterparties-by-eu-regulator-what-will-be-the-impact\/","title":{"rendered":"Derecognition of six Indian central counterparties by EU regulator: What will be the impact?"},"content":{"rendered":"\n

Source: <\/b>The post is based on the article <\/span>\u201cDerecognition of six Indian central counterparties by EU regulator: What will be the impact?\u201d<\/b> published in <\/span>Indian Express <\/b>on 4th May 2023<\/b><\/p>\n

What is the News?<\/b><\/h2>\n

The European Securities and Markets Authority (ESMA), the European Union (EU\u2019s) financial markets regulator and supervisor has derecognised six Indian central counterparties(CCPs).<\/span><\/p>\n

What are Central Counterparties(CCPs)?<\/b><\/h2>\n

CCP performs two main functions as the intermediary in a market transaction \u2013clearing and settlement \u2013 and guaranteeing the terms of trade.\u00a0<\/span><\/p>\n

A CCP is authorized by the RBI to operate in India under the Payment and Settlement Systems Act, 2007.<\/span><\/p>\n

Some of the important CCPs in India are<\/b>\u00a0The Clearing Corporation of India (CCIL), Indian Clearing Corporation Ltd (ICCL), NSE Clearing Ltd (NSCCL), Multi Commodity Exchange Clearing (MCXCCL) among others.<\/span><\/p>\n

What is the issue?<\/b><\/h2>\n

As per the European Market Infrastructure Regulations (EMIR), a CCP in a third country can provide clearing services to European banks only if it is recognised by ESMA.<\/span><\/p>\n

ESMA has derecognised six Indian CCPs due to \u2018no cooperation arrangements\u2019 between ESMA and Indian regulators \u2013 the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI) and the International Financial Services Centres Authority (IFSCA).<\/span><\/p>\n

While ESMA wants to supervise these six CCPs, Indian regulators are of the view that since these domestic CCPs operate in India and not in the EU, these entities cannot be subjected to the ESMA regulations.\u00a0<\/span><\/p>\n

They feel that these six CCPs have robust risk management and there is no need for a foreign regulator to inspect them.<\/span><\/p>\n

What will be the impact of the move?<\/b><\/h2>\n

With the withdrawal of recognition, these six CCPs will no longer be able to provide services to clearing members and trading venues established in the EU.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cDerecognition of six Indian central counterparties by EU regulator: What will be the impact?\u201d published in Indian Express on 4th May 2023 What is the News? The European Securities and Markets Authority (ESMA), the European Union (EU\u2019s) financial markets regulator and supervisor has derecognised six Indian central… Continue reading Derecognition of six Indian central counterparties by EU regulator: What will be the impact?<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10500],"class_list":["post-240890","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/240890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=240890"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/240890\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=240890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=240890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=240890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}