Market regulators in France and Germany have asked their banks to continue dealing with Indian clearing houses beyond the end-of-October deadline, after a dispute The lack of surveillance powers threatened to derail trade, according to people familiar with the matter.

European authorities have set deadline last year, after their request to co-supervise European trades settled through Indian clearing houses was refused by the Reserve Bank of India. They have asked their banks to consider alternative arrangements with local lenders, said the sources, which included an Indian official.