Recognition of NSE Clearing Limited by Bank of England

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March 20, 2019 10:48 PM IST | PTI

The Bank of England has recognised NSE Clearing to continue to act as a third-country central counterparty, as Britain sought a three-month extension on leaving the European Union to June 30.

Britain was supposed to leave the European Union on March 26 but all the deals that the government had sewed up with the 26-member political and monetary union have been voted out by parliament thrice since January.

The recognition has been granted under the temporary recognition regime (TRR) of the central counterparties (EU Exit) regulations of 2018, an official statement said.

It will facilitate NSE Clearing to continue to offer clearing and settlement services to England-based foreign portfolio investors and other Britain-based entities under TRR if the finally London votes to the EU with no implementation

period, NSE Clearing chief executive Vikram Kothari said in a statement late Wednesday.

The recognition to the arm of the largest stock bourse as a 'third-country CCP' has been notified by Bank of England on Tuesday in the interim list of third-country CCPs, an official statement added.

The TRR will enable NSE Clearing to provide clearing services and activities to the England-based entities for up to three years from the commencement of the TRR, extendable by the British treasury in increments of 12 months, it added.

The statement came hours after British prime minister Theresa May asked EU leaders to delay Brexit until June 30--on the eve of an EU summit in Brussels.

May said she had written to EU president Donald Tusk "informing him that Britain seeks an extension to the Article 50 period to June 30".

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