Over the course of the year, the EU has recognised the Fixed Income Clearing Corporation, the National Securities Clearing Corporation and the Options Clearing Corporation in the US, the Shanghai Clearing House and Dubai Clear based on the equivalence of regulatory requirements. Similar arrangements are being worked out for clearing corporations in Chile, Indonesia, Israel and Malaysia. Countries where trade repositories are in the process of being derecognised include Argentina, Colombia, Russia, Taiwan, Thailand and Turkey. But this is open to review. India could fall into this category if the Reserve Bank of India (RBI), Sebi and the International Financial Services Centres Authority are not comfortable with foreign oversight of the clearing corporations they regulate.
To the extent that the EU technical standards are an improvement in counterparty risk mitigation, it would be in the interest of Indian financial regulation to acquire equivalence with these reporting requirements. India may have some leverage in European banks losing custodian business for trades by foreign portfolio investors. But that would run counter to efforts to deepen linkages with the global capital market.