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The Reserve Bank of India (RBI) and the Financial Services Agency (FSA), Japan, on Wednesday exchanged letters of cooperation in the field of Central Counter Parties (CCPs) with the objective of improving mutual cooperation.
With this exchange of letters, RBI and FSA are committed to deepen relations between the two countries and strengthen the exchange of information, according to a statement from RBI. RBI and FSA also expressed their willingness to hold a dialogue or exchange views about matters of common interest and concerns as appropriate. The letters confirm the interest of both jurisdictions in enhancing cooperation in line with their respective laws and regulations. A central clearing counter party, also referred to as a central counter party, is a financial institution that takes on counter party credit risk between parties to a transaction and provides clearing and settlement services for trades in foreign exchange, securities, options, and derivative contracts. The letters will also provide a strong foundation for promoting mutual understanding and cooperation pertaining to CCP activities in cross-border context. The cooperation will be mutually beneficial and ensure soundness of the financial markets in both the jurisdictions. (ANI)
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