EU fin regulator action may hit forex, interest swap mkt

Move Against 6 Indian Entities Won't Hit Equity Mkt: Analysts

Mumbai: The decision by the European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, to derecognise six Indian central counterparties (CCPs) could lead to disruptions in the foreign exchange and interest rate swap market. The equity market, however, will mostly remain unaffected, sources said. CCPs are mandated in some financial transactions to eliminate the risk of counterparty default.

The six disqualified intermediaries are Clearing Corporation of India, Indian Clearing Corp, NSE Clearing (formerly NSCCL), Multi Commodity Exchange Clearing, India International Clearing Corp and SE IFSC Clearing.