Leading exchange BSE today said its subsidiary Indian Clearing Corporation has received recognition as a Third-Country Central Counterparty (TC-CCP) by the European Securities and Markets Authority (ESMA).
The recognition is in accordance with the European Market Infrastructure Regulation (EMIR).
Indian Clearing Corporation Ltd (ICCL) is a wholly owned subsidiary of BSE and carries out the functions of clearing, settlement, collateral management and risk management for various segments of BSE.
Under EMIR, a Central Counterparty (CCP) not established in the European Union may provide clearing services to clearing members or trading venues established in the European Union only if it is recognised by ESMA TC-CCP, according to a BSE release.
A CCP is an entity that helps facilitate clearing and settlement activities.
"This is an important landmark for centralised clearing in India; cementing ICCL's place as a leader in risk management practices in India.
"The recognition reinforces ICCL's status as a preferred CCP in the international financial markets," said K Kumar, the Managing Director and Chief Executive Officer of ICCL.
In July, the Securities and Exchange Board of India (Sebi) had signed a Memorandum of Understanding with ESMA under EMIR for exchange of information concerning Central Counterparties.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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