EMIR Regulation 

Important notice for users of Derivatives in Ireland 

If, in the course of your business as an undertaking established in the European Union,you enter into derivative transactions you should be aware of your obligations under the European Market Infrastructure Regulation ("EMIR").

The Central Bank of Ireland ("Central Bank") has been designated National Competent Authority ("NCA") for EMIR in the State by Statutory Instrument No. 443 of 2014. One of the challenges of EMIR is that it applies not only to Financial Counterparties ("FCs") as regulated entities, but it also extends the supervisory remit of the Central Bank to Non-Financial Counterparties ("NFCs"), the vast majority of which have not had any previous interaction with the Central Bank.

 

Introduction to EMIR - What is EMIR?

EMIR stands for European Market Infrastructure Regulation

Regulation 648/2012 On OTC Derivatives, Central Counterparties and Trade Repositories (“EMIR”) 

EMIR implements increased transparency in respect of derivatives

1.       By way of reporting of all derivative contracts (including exchange traded derivatives  to Trade Repositories (TRs); 

2.       Provides for a specific clearing system of derivatives, which breach certain thresholds; 

3.       Provides for risk mitigation techniques for non–centrally cleared derivatives;  and

4.       EMIR sets out requirements for both Central Counterparties (CCPs) and TRs.

EMIR applies to certain Financial Counterparties (FCs) which are defined in EMIR as including;

  • an investment firm authorised in accordance with Directive 2004/39/EC;
  • a credit institution authorised in accordance with Directive 2006/48/EC;
  • an insurance undertaking authorised in accordance with Directive 73/239/EEC;
  • an assurance undertaking authorised in accordance with Directive 2002/83/EC;
  • a reinsurance undertaking authorised in accordance with Directive 2005/68/EC;
  • an institution for occupational retirement provision within the meaning of Article 6 (a) of Directive 2003/41/EC;  
  • a UCITS and, where relevant, its management company, authorised in accordance with Directive 2009/65/EC; and
  • an alternative investment fund managed by AIFMs authorised or registered in accordance with Directive 2011/61/EU).

EMIR also includes Non-Financial Counterparties (NFCs) meaning an undertaking established in the Union which is not a FC or a CCP.

This website is intended to provide information and guidance for undertakings in Ireland that may be subject to EMIR.

In order to fulfil our obligations as National Competent Authority, we have set up an EMIR Unit to ensure that we are operationally prepared for the implementation of EMIR. The supervision of EMIR compliance for existing regulated counterparties will be conducted by the sectoral supervisory areas and the EMIR Unit will supervise NFCs which are not subject to other Financial Regulations.

If you have a query in relation to EMIR please consult the Questions and Answers as well as those already published by ESMA and the European Commission.  If your question is not covered please contact emir@centralbank.ie