ESMA Signs Memorandum of Understanding with the Reserve Bank of India

Why It Matters

The deal reopens cross‑border clearing channels, expanding liquidity and risk‑mitigation options for both EU and Indian market participants. It also reinforces regulatory convergence, a key driver of global financial stability.

Key Takeaways

• ESMA and RBI formalize CCP cooperation via MoU
• Allows CCIL to seek EMIR recognition again
• Restores EU clearing members' access to Indian markets
• Supports EU’s Article 25 EMIR compliance for third‑country CCPs
• ESMA continues talks with SEBI and IFSCA

Pulse Analysis

The European Securities and Markets Authority’s recent memorandum of understanding with the Reserve Bank of India marks a pivotal step in aligning trans‑Atlantic and South Asian market infrastructures. Central counterparties, or CCPs, serve as the backbone of modern derivatives clearing, mitigating counterparty risk and enhancing liquidity. Under the European Market Infrastructure Regulation, ESMA must secure formal cooperation agreements before recognizing non‑EU CCPs. By signing the MoU, ESMA satisfies the Article 251 prerequisite, paving the way for the Clearing Corporation of India Ltd to re‑apply for EMIR recognition and re‑establish a cleared‑trade pipeline between the two regions.

For EU clearing houses, regaining access to Indian CCPs translates into a broader client base and diversified collateral options, while Indian market participants benefit from deeper liquidity and exposure to European pricing benchmarks. The MoU also signals regulatory confidence, encouraging banks and asset managers to allocate capital toward cross‑border clearing activities without fearing supervisory friction. Moreover, the reinstated linkage can reduce settlement costs by centralising risk management under a single, internationally recognised clearing framework, thereby strengthening the resilience of both continents’ derivatives markets.

Looking ahead, the ESMA‑RBI agreement is likely to catalyse further harmonisation efforts with India’s securities regulator SEBI and the International Financial Services Centres Authority. Such multi‑agency cooperation could streamline the approval of additional Indian CCPs, foster joint supervision of emerging fintech clearing solutions, and create a template for future EU‑Asia regulatory bridges. As global markets seek greater stability after recent volatility, the ability to recognise and monitor third‑country CCPs through formal MoUs will become a cornerstone of cross‑border risk mitigation and market integration.

ESMA signs Memorandum of Understanding with the Reserve Bank of India

ESMA signs Memorandum of Understanding with the Reserve Bank of India 27 January 2026

CCP

International cooperation

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI) to facilitate cooperation and exchange of information for the recognition of central counterparties (CCPs) established in India and supervised by RBI.

This agreement marks a significant step towards restoring access for EU clearing members to Indian central counterparties and follows two years of sustained engagement between ESMA and RBI. It reflects ESMA’s strong commitment to international supervisory cooperation and mutual support to advance safe, resilient and open financial markets.

Next steps

The MoU is a key requirement under Article 25 of the European Market Infrastructure Regulation (EMIR) for the recognition by ESMA of third-country CCPs. It allows the Clearing Corporation of India Ltd (CCIL), a CCP established in India and supervised by RBI, to re-apply for recognition under EMIR. 

ESMA is also continuing discussions with the Securities and Exchange Board of India (SEBI) and the International Financial Services Centres Authority (IFSCA) to conclude similar cooperation arrangements.

Further information:

Tayfun Yilmaz

Communications Officer

[email protected]

10/02/2026

ESMA91-2145765636-11273

Memorandum of Understanding between ESMA and the Reserve Bank of India on central counterparties