ESMA and SEBI signed a Memorandum of Understanding to facilitate the recognition of Indian CCPs under EMIR, restoring EU clearing member access to Indian CCPs.
Why it matters. This agreement enhances international cooperation in financial regulation, impacting EU and Indian financial markets.
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has signed a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI) to facilitate cooperation and exchange of information in relation to the recognition of central counterparties (CCPs) established in India and supervised by SEBI.
Following the signature of an MoU between ESMA and the Reserve Bank of India (RBI) earlier this year, this agreement marks a further significant step towards restoring access for EU clearing members to Indian CCPs and follows more than two years of sustained engagement between ESMA and Indian authorities.
It is a key requirement under Article 25 of the European Market Infrastructure Regulation (EMIR) for the recognition of third-country CCPs by ESMA.
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has signed a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI) to facilitate cooperation and exchange of information in relation to the recognition of central counterparties (CCPs) established in India and supervised by SEBI.
CCPs established in India and supervised by SEBI
The MoU will allow CCPs established in India and supervised by SEBI to re-apply for recognition under EMIR. It is a key requirement under Article 25 of the European Market Infrastructure Regulation (EMIR) for the recognition of third-country CCPs by ESMA.
