Euroclear and The Clearing Corporation of India Limited (CCIL) have signed a Memorandum of Understanding (MOU) regarding post-trade processing collaboration. Both companies have penned a non-binding agreement to explore the possibility of closer ties, aimed at building a co-operative relationship.
Talks are expected to cover the feasibility of a communications gateway between CCIL, the local central securities depository (CSD) in India, and Euroclear Bank, the international CSD. Furthermore, arrangements for the potential settlement of trades in Indian securities between CCIL and Euroclear Bank clients will also be open to discussion.
“We have a lot to share with our industry colleagues in India, and likewise, look forward to gaining a better understanding of CCIL’s interests,” says Martine Dinne, the Chief Executive Officer of Euroclear Bank. “Our collaboration with CCIL could further support the established trend of foreign investment flowing into India, a market that is predicted to become one of the top five economies in the world.”
“We are enthusiastic that this arrangement could provide access to certain Euroclear services for current CCIL users, and vice versa,” adds R.H. Patil, the Chairman of CCIL. “For example, we will be exploring how an Indian bank client would be able to use its CCIL interface in the future to route cross-border settlement instructions to and from Euroclear Bank. Furthermore, our skilled capital-market workforce stands to benefit from joint training possibilities scheduled in different locations on the subcontinent in 2007.”