European and Indian regulators agree to share data on clearing houses

The European Securities and Markets Authority (ESMA) and the Reserve Bank of India (RBI) have formalised a new cooperation agreement, aiming to facilitate information exchange and the recognition of central counterparties established in India.

This Memorandum of Understanding serves as a vital regulatory bridge designed to enable the recognition of Indian clearing houses that fall under the supervision of the Indian central bank.

“This agreement marks a significant step towards restoring access for EU clearing members to Indian central counterparties and follows two years of sustained engagement between ESMA and RBI,” ESMA said.

“It reflects ESMA’s strong commitment to international supervisory cooperation and mutual support to advance safe, resilient and open financial markets,” it added.

Under the specific requirements of Article 25 of the European Market Infrastructure Regulation, such an agreement is a mandatory prerequisite for the formal recognition of third-country central counterparties.

The signing of the document specifically allows the Clearing Corporation of India Ltd, which is supervised by the Reserve Bank of India, to re-apply for recognition under the European framework.

Beyond this immediate milestone, the European authority is continuing active discussions with the Securities and Exchange Board of India to conclude similar cooperation arrangements.

Negotiations are also ongoing with the International Financial Services Centres Authority as the European Union seeks to expand its regulatory reach and formalise ties with additional Indian supervisors.