New Delhi: The Reserve Bank of India (RBI) and the European Securities and Markets Authority (ESMA) have signed a Memorandum of Understanding (MoU) concerning cooperation and exchange of information in relation to Central Counterparties (CCPs) regulated and supervised by RBI.
This agreement according to the official release has replaced an earlier MoU between RBI and ESMA which was entered into on February 28, 2017. The MoU enables RBI and ESMA to cooperate regarding CCPs, in line with their respective laws and regulations.
The MoU establishes a framework for ESMA to place reliance on RBI’s regulatory and supervisory activities while safeguarding the European Union’s financial stability.
Further this memorandum is also demonstrating the importance of cross-border cooperation to facilitate international clearing activities.
The MoU was signed by RBI Executive Director Vivek Deep and ESMA Chair Verena Ross.