Nodal central counterparty seen as a solution to ESMA-RBI tussle

Indian, EU authorities trying to resolve the issue: Officials

A nodal central counterparty (CCP) could be a solution to the stalemate between the Reserve Bank of India (RBI) and the European Securities and Markets Authority (ESMA), the financial markets regulator for the European Union (EU).

According to government officials, regulatory authorities — both in India and the EU — are working to find a solution to the issue of allowing the ESMA to inspect and audit Indian clearing corporations.

Under the nodal CCP model, an ESMA-approved body will act as a link between Indian CCPs and the European regulator. The nodal CCP will be set up in India and will oversee