No significant impact of Esma ban, say domestic clearing corporations

Domestic clearing corporations (CCs) don’t expect any significant impact due to the de-recognition by the European Securities and Markets Authority (ESMA), which has come into effect from April 30. 

The financial regulator for the European Union (EU) has withdrawn the third-country central counterparties (CCPs) recognition of six Indian clearing corporations -- namely Clearing Corporation of India (CCIL), Indian Clearing Corporation, NSE Clearing, India International Clearing Corporation (IFSC), NSE IFSC Clearing Corporation and Multi Commodity Exchange Clearing Corporation.

Industry sources said that as of Tuesday, the European banks continued to use the clearing and settlement services of the CCIL.

“There is