RBI, ESMA Sign MoU to End Clearing Standoff, Paving Way for CCIL Recognition
Economy
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CNBC TV18•27-01-2026, 20:29
RBI, ESMA Sign MoU to End Clearing Standoff, Paving Way for CCIL Recognition
- •The Reserve Bank of India (RBI) and the European Securities and Markets Authority (ESMA) signed an MoU to enhance cooperation and information exchange on central counterparties (CCPs).
- •This new MoU replaces a 2017 agreement, establishing a framework for regulatory cooperation aligned with their respective laws.
- •The agreement allows ESMA to rely on RBI's regulatory oversight, ensuring EU financial stability and facilitating international clearing.
- •The MoU is crucial for ESMA's recognition of third-country CCPs under EMIR Article 25, enabling the RBI-supervised Clearing Corporation of India Ltd (CCIL) to reapply for recognition.
- •This resolves a long-standing issue since 2022, which restricted EU clearing members' access to Indian CCPs, and reflects ESMA's commitment to international supervisory cooperation.
Why It Matters: RBI and ESMA's new MoU resolves a clearing standoff, enabling CCIL's EU recognition and boosting financial cooperation.
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