ESMA to derecognise CCIL: Banks, RBI discuss alternative clearing methods

Fresh clearing options came up in discussions with RBI, banks in touch with offshore regulators

Following the decision of European regulators to de-recognise the Clearing Corporation of India, Reserve Bank of India officials and executives of some foreign banks are said to have discussed the prospects of lenders seeking to establish alternative clearing mechanisms, according to sources.
 

Several European banks with a presence in India have been making representations to offshore regulators -- the European Securities and Markets Authority (ESMA) and the Bank of England (BoE) – for the resolution of the matter, which has the potential to severely hamper trading operations, sources said.
 

The ESMA in late October de-recognised six Indian clearing houses including