European Securities authority approves recognition for India clearing corporation

The European Securities and Markets Authority (ESMA) has approved recognition for the Clearing Corporation of India Ltd (CCIL) as a central counterparty under the European Market Infrastructure Regulation (EMIR), ending a years-long supervisory standoff. The move allows CCIL to remain under Reserve Bank of India oversight and averts a rise in capital adequacy requirements for European banks clearing trades via CCIL that was set to kick in from June 30. A final recognition is pending amendment of the EMIR Act.