- European Securities and Markets Authority (ESMA), the European Union’s financial markets regulator and supervisor, has derecognized six Indian central counterparties (CCPs) from April 30, 2023, due to no cooperation arrangements between ESMA and Indian regulators.
- EMIR mandates the recognition from ESMA for a central counterparty (CCP) in a third country to offer clearing services to European banks.
- ESMA reviewed the recognition of all third-country CCPs (TC-CCPs) that had been recognized before September 21, 2020, and decided to derecognize Indian CCPs due to no cooperation arrangements with Indian regulators, including the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the International Financial Services Centres Authority (IFSCA).
- The derecognition of these TC-CCPs implies that they can no longer offer their services to clearing members and trading venues that are established in the EU.
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