India, EU regulators standoff over clearing houses to affect BNP to HSBC

Recent changes in European Market Infrastructure Regulation demanded that ESMA must establish cooperation arrangements with countries that has their own central counterparties

Indian and European regulators are clashing over whether to broaden oversight of securities settlement, a dispute that risks disrupting operations of BNP Paribas SA to HSBC Holdings Plc, or at the least bump up their costs.
 

The potential damage stems from the European Securities and Markets Authority’s move to withdraw recognition -- effective May 2023 -- to six Indian central counterparties after the Reserve Bank of India resisted ESMA’s request to be allowed to join the RBI in overseeing Indian transactions. 

Recent changes in European Market Infrastructure Regulation demanded that ESMA must establish cooperation arrangements with countries that has their