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MSE's clearing arm certified as qualified CCP by ESMA

Press Trust of India  |  Mumbai 

European Securities & Markets Authority (ESMA) has certified Metropolitan Stock Exchange of India's clearing arm MCCIL as third country central counterparty.

A qualified central counterparty (CCP) member is subjected to lower capital requirements/charges under the Basel III framework introduced by the Basel Committee on Supervision.

"We are extremely delighted by this recognition which places us at par with the other 2 older market players ( and NSE) and paves way for us to deliver central counterparty services to market participants of European origin," MSE managing director and CEO Udai Kumar said in a statement.

"Also, this combined with the qualified CCP status of MCCIL means lower risk capital provisioning for market participants of European origin," he added.

Last week, top stock exchanges and had announced that ESMA has granted their respective clearing houses NSCCL and ICCL the status of qualified CCP.

MCCIL (Metropolitan Clearing Corporation of Ltd) provides clearing, settlement, collateral and risk management services for all trading segments of MSE.

Presently, MCCIL has around 100 clearing members out of which more than 20 are banks. Some of the banks that are clearing members of MCCIL are registered in the European Union and are operating in as foreign bank branches.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, October 10 2017. 16:22 IST