The Clearing Corporation of India Limited (CCIL) has received the European Securities Markets Authority (ESMA) recognition as a Third Country CCP (central counterparty), the RBI backed clearing and settlement company said in a statement.
"The Clearing Corporation of India Limited is recognized as a Tier 1 TC-CCP by ESMA in accordance with Article 25 of Regulation (EU) No 648/2012, to provide services to clearing members and trading venues established in the European Union. The recognition is effective from 30th June, 2026," CCIL said in a short statement on its website.
The ESMA recognition ends a more than three year back-and-forth between Indian and European authorities for jurisdiction in bond trading especially by European banks in India.
The recognition allows CCIL to provide services to clearing members and trading venues established in the European Union and top lenders from that part of the world like Deutsche Bank and BNP Paribas.
CCIL is India's primary clearing and settlement institution for transactions in government securities, foreign exchange, money market instruments and derivative products.
With CCIL not being recognised by ESMA, these Europe based entities faced extra costs in trading in India.
This impasse had started when ESMA had announced the withdrawal of CCIL’s recognition in October 2022 demanding oversight including access to the books of the clearing house which the RBI said was infringing on its authority.
