SEBI inks pact with ESMA for info exchange on CCPs
July 21st, 2017
Markets regulator SEBI has entered into a pact with the European Securities and Markets Authority (ESMA) for exchange of information concerning Central Counterparties (CCPs). CCPs are entities that help facilitate clearing and settlement activities. The MoU establishes cooperation arrangements, including exchange of information regarding CCPs which are established and authorised or recognised in India by SEBI and which have applied for EU recognition under EMIR. EMIR provides for signing of a cooperation arrangement between ESMA and the relevant non-EU authorities, whose legal and supervisory framework for CCPs have been deemed equivalent to EMIR by the European Commission. Signing of MoU is one of the conditions for recognition of third country CCPs by ESMA under EMIR.