UK grants equivalence to RBI authorised clearing houses msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.
"This is because the RBI requires CCPs it designates as an FMI to comply with the PFMIs (Principles on Financial Market Infrastructures). Accordingly, HM Treasury has determined that the RBI s legal and supervisory framework, in relation to CCPs that the RBI has designated a FMI, meets the tests set out in paragraphs 6.2," the documents read.
Central counterparties perform two main functions as the intermediary in a market transaction – clearing and settlement – and guarantee the terms of trade. With the withdrawal of recognition, they will no longer be able to provide services to clearing members and trading venues established in the EU, ESMA had said.