Bank of England and the Reserve Bank of India Memorandum of Understanding

On December 1, 2023, the Bank of England (BoE) issued a statement in which it informs of the signing of a Memorandum of Understanding (MoU) between the Reserve Bank of India (RBI) and the BoE itself aimed at facilitating the exchange of information and cooperation regarding the supervision of incoming Indian central counterparties (CCPs) such as Clearing Corporation of India Ltd. The MoU is a prerequisite for the BoE to positively assess the clearing firm’s application for recognition in the UK or any other application of an Indian CCP.
Specifically, the MoU entails
– the exchange of information regarding key regulatory changes affecting the supervision of CCPs;
– the exchange of information regarding relevant issues of any CCP;
– the notification of material events (e.g. financial stress of a CCP); or the
– the cooperation on regulatory measures affecting a central counterparty.
The MoU further defines the process for requesting information and sets out the provisions for keeping confidential any information to the extent necessary to oblige with local regulations.