Indian and European regulators negotiate clearing house oversight; ESMA withdrew recognition from six Indian CCPs due to RBI rejection of co-supervision.

Indian and European regulators are negotiating oversight issues related to local clearing houses, aiming for a resolution by the end of October. The Reserve Bank of India rejected a request from the European Securities and Markets Authority (ESMA) to co-supervise transactions, prompting ESMA to withdraw recognition from six Indian central counterparties. Banks are advised to create alternative arrangements to avoid disruptions in trading government bonds and derivatives.