Feb 17 (Reuters) – France’s AMF market regulator has given its banks and members eighteen months to seek out new methods to settle India-based trades amid a stand-off between Indian monetary regulators and the European Securities Market Authority (ESMA), it mentioned in an announcement on Friday.
The ESMA has withdrawn recognition of six Indian clearing counterparties efficient from April, which means European banks must settle their India-based trades via banks based mostly in different jurisdictions.
The French regulator, asking banks to submit transition plans, mentioned that credit score establishments have shared considerations that the orderly switch of their Indian commerce positions is a prolonged course of.
The plans ought to element the steps they intend to implement to switch positions to a “duly authorised clearing member” no later than Oct. 31, 2024, AMF mentioned.
Reporting by Jayshree P Upadhyay; Enhancing by Kirsten Donovan
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