Gandhinagar, Gujarat, July 01, 2019: NSE IFSC Clearing Corporation Limited (NICCL), a wholly owned subsidiary of NSE Clearing Limited (formerly known as National Securities Clearing Corporation Limited) has been granted recognition by European Securities & Markets Authority (ESMA) as a third-country CCP under European Market Infrastructure Regulation (EMIR). The recognition to NSE IFSC Clearing Corporation Limited (NICCL) as a “third-country CCP” has been notified by ESMA on June 24, 2019.
Based on the ESMA recognition, entities in the European Union shall be able to consider NICCL as “Qualified CCP” under the Basel III rules. Due to this, European participants shall be able to apply a significantly lower risk towards their trade exposures to NICCL and thus be benefitted substantially on account of lower capital requirements.
This recognition of NICCL would enable European based participants/banks to participate in GIFT IFSC. This development should give increased confidence and encourage increased participation from European based market intermediaries in India’s first International Financial Service Centre.
Mr. Vikram Kothari, MD & CEO, NSE Clearing, said, “GIFT IFSC is one of the key initiatives of Government of India to put India on the global map as a leading investment destination. Its economic footprint shall grow significantly and recognition to NICCL as Third-Country CCP by ESMA will further boost the confidence of Investors in GIFT IFSC”
About NSE IFSC Clearing Corporation Limited (NICCL):
NSE IFSC Clearing Corporation Limited (NICCL) is a fully owned subsidiary of NSE Clearing Limited (formerly known as National Securities Clearing Corporation Limited) (NSE Clearing). NSE International Clearing has received recognition as a Clearing Corporation under Regulation 4 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015.
NICCL has commenced its operations since June 05, 2017. NICCL currently acts as a clearing corporation for all the trades executed on NSE IFSC Ltd, a fully owned subsidiary of National Stock Exchange of India (NSE). NICCL provides counter-party guarantee for the trades executed on NSE IFSC Ltd. NICCL has put in place a comprehensive risk management framework to eliminate or mitigate risks. It has adopted best practices and principle in order to ensure robust risk management systems in line with CPMI IOSCO Principles for Financial Market Infrastructures (PFMIs).
About NSE Clearing Limited (NSE Clearing):
NSE Clearing Limited is a wholly owned subsidiary of National Stock Exchange of India Ltd (NSE). NSE Clearing provides clearing and settlement services to members throughout the lifecycle of a trade. NSE Clearing was the first clearing corporation established in India.
About National Stock Exchange of India Limited (NSE):
National Stock Exchange of India Ltd. (NSE) is the leading stock exchange in India and the second largest in the world by nos. of trades in equity shares from January to December 2018, according to World Federation of Exchanges (WFE) report. NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully-integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members with the rules and regulations of the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE believes that the scale and breadth of its products and services, sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide high-quality data and services to market participants and clients.
For more information, please visit: www.nseindia.com
