EU market regulator withdraws recognition of 6 Indian clearing corporations

The European Securities and Markets Authority (ESMA) has withdrawn recognition of six clearing corporations in India from April 30. The regulator had requested supervisory powers over the clearing corporations, but Indian regulators resisted and ESMA subsequently de-recognised the firms. Under the European Market Infrastructure Regulation (EMIR), a central counterparty (CCP) from outside the European Union must have ESMA recognition to offer clearing services to members or trading venues. However, ESMA has given recognition to four more third-country clearing corporations from Malaysia, Taiwan, Colombia and Israel.