On 31 October 2022, the European Securities and Markets Authority (ESMA) announced that six central counterparties (CCPs) established in India will have their recognition decisions withdrawn in accordance with the European Market Infrastructure Regulation (EMIR).

ESMA had to tier and review the recognition of all third country CCPs (TC-CCPs) that had been recognised prior to 21 September 2020, in accordance with Article 89(3c) of EMIR.

After conducting its assessment, ESMA established that not all the cumulative conditions under EMIR for the recognition of the six TC-CCPs are met, as no cooperation arrangements (compliant with Article 25(7) of EMIR) have been concluded between ESMA and each of the relevant Indian authorities.

As a result, ESMA concludes that these TC-CCPs cannot continue to be recognised in the European Union under the EMIR regime.