FAQs 

For any query please contact us at emir@centralbank.ie 

1. Who is the National Competent Authority (NCA) in Ireland?

On 8 October 2014, the Central Bank was appointed the sole NCA for EMIR by the Minister for Finance in Statutory Instrument S.I. 443 of 2014.

2. Are FX Forwards considered as derivatives?

EMIR defines reportable FX derivatives by referring to Directive 2004/39/EC (MIFID1). The Central Bank is now (August 2014) guiding firms, as a temporary measure, that a reasonable operational definition, in the absence of further initiatives by EU Authorities, is:  

- All FX transactions with settlement before or on the relevant spot date are not to be reported;

- All FX transactions with settlement beyond seven days are to be reported;

- All FX transactions with settlement between the spot date and seven days (inclusive) are to be reported only if, in a jurisdiction where one counterparty to the trade is located, local laws, rules or guidance would deem the transaction reportable; and where one counterparty is located in another jurisdiction the Irish counterparty should rely on documentation from that counterparty to inform it that there is a requirement in their jurisdiction.

3. If I am Irish and do a FX trade with an Irish counterparty for settlement between 3 and 7 days should I report?    

As a temporary measure, we are guiding that you should not consider yourself as, for the moment, obliged to report such trades. We recommend, nevertheless, that you do report where you have systems in place to do so and for the purpose of building systems that will continue to operate in the medium to longer term, we recommend that you build capacity to report such trades.

4. Is your advice on FX Forwards likely to change?

Our advice is likely to remain unchanged at least until the E.U. Commission indicates whether and how it might use powers due to be conferred on it under MiFID II. A draft proposal is currently being worked on.

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Superseded and deleted.  

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Superseded and deleted.  

7. How will the Central Bank proceed to supervise and enforce compliance with the reporting requirements in EMIR?

The supervision of financial counterparties (FCs) EMIR compliance is incorporated into the Central Bank’s risk-based approach for supervision (PRISM) where relevant. 

The role of supervising EMIR compliance by non-financial counterparties (NFCs) is new and a specialist EMIR unit has been established for this purpose. The EMIR unit will also process the various notifications and applications required by EMIR (e.g. applications for intragroup exemptions). 

The Central Bank consulted on the Supervision of NFCs under EMIR (CP90) and on 16 July 2015 the Central Bank published a Feedback Statement to this consultation. This Feedback Statement provides details on the Central Bank’s revised model of EMIR Supervision and is available at the following link:

http://www.centralbank.ie/REGULATION/POLDOCS/CONSULTATION-PAPERS/Pages/closed.aspx

The Central Bank’s supervisory approach may be subject to change in light of resource constraints, systems development and operational priorities.

8. Is there a Central Bank approved or preferred TR?

No. All ESMA registered TRs are equally acceptable in discharging reporting obligations.  The requirement is for trades to be reported to a TR; therefore, a single entity could report different trades to different TRs.  The important thing is that all trades are reported, not that they are reported to the same TR.  The list of the 6 registered TRs is available on the ESMA website Registered-Trade-Repositories

9. My TR had a problem and will not accept my trades: should I send them to the Central Bank?

No. The obligation is to report to a TR, not to the NCA; sending trades to us would not discharge your obligation. Should there be problems (and we understand that there might be, in the initial phases), ensure that all efforts are made to report trades as soon as possible and keep detailed records of the incident, the trades involved and the process to resolve the matter so that the information can be made available to the Central Bank if requested.  

10. Where can I get my LEI code? Is there a national authorised LEI provider?

Following the recent establishment of the Global LEI Foundation (GLEIF), Legal Entity Identifier Codes, (LEI codes) are now available. All pre-LEI codes which have been obtained so far including CICI codes[1] are now deemed LEI codes[2].

All counterparties should ensure that they have a LEI code and use it to report to TRs. For those counterparties who cannot obtain a LEI code e.g. individuals acting as undertakings as described in the European Commissions’ Frequently Asked Questions, the assumption is that the individual (the client) will be dealing with Financial Counterparties and that the internal client code of that Financial Counterparty can still be used to identify the client for reporting purposes.

LEI codes can be obtained from any approved pre-Local Operating Units provider (pre-LOU provider). The full updated list is available on the Regulatory Oversight Committee (ROC) website LEI. The Irish Stock Exchange is an approved pre-LOU provider (ise direct).

The Central Bank has no preference as to which pre-LOU the LEI Code is obtained from, however the LEI must be from an approved provider in the ROC list.

Please note that the same reporting code must be used for all EMIR reporting submissions.

11. When can I submit a request/ notification for an intragroup exemption?

The Central Bank is now accepting intragroup exemption notifications in respect of the clearing obligation as the initial RTS on clearing has now entered into force as of 21 December 2015.

An Irish Counterparty intending to avail of an intragroup exemption or derogation (where one counterparty is established in a third country, as provided for in Commission Delegated Regulation (EU) 2015/2205 of 6 August 2015) must notify the Central Bank at least 30 calendar days in advance.

A completed notification form must be submitted to both the counterparty's Central Bank supervisor and the EMIR Unit (as appropriate). Please email emir@centralbank.ie to request an IGT Exemption/Derogation notification form. 

12. How do I submit the monthly unconfirmed trades report?

The European Commission Delegated Regulation No 149/2013, Article 12.4 states that “financial counterparties shall have the necessary procedure to report on a monthly basis to the competent authority designated in accordance with Article 48 of Directive 2004/39/EC of the European Parliament and of the Council the number of unconfirmed OTC derivative transactions referred to in paragraphs 1 and 2 that have been outstanding for more than five business days”  

At this point financial counterparties do not need to submit such a report unless specifically requested to by the Central Bank. However, it is expected that all impacted financial counterparties will have,  from 15th March 2013, had the necessary procedures in place to report to the Central Bank when requested to do so.

13. Non-Financial Counterparties (NFCs) - What is the clearing threshold?

A NFC that takes speculative positions in OTC derivative contracts that exceed any one of the specified limits set out in Article 11 of Commission Delegated Regulation EU No. 149/2013 is deemed to have breached the clearing threshold.

Article 10 of Commission Delegated Regulation (EU) No 149/2013 sets out the criteria for determining which OTC contracts are non-speculative.

14. I am a NFC  with OTC derivative contracts above the clearing threshold, which are not objectively measurable as reducing risks. What do I need to do?

A NFC must inform both ESMA and its National Competent Authority (NCA) when it exceeds the clearing threshold (NFC+) and when it no longer exceeds the clearing threshold (NFC-).

For further information on the clearing thresholds and for a copy of the relevant notification to be submitted please see link to ESMA's 'Non-Financial Counterparties' page.

Notifications to the Central Bank of Ireland should be sent to emir@centralbank.ie.

A NFC which exceeds the clearing threshold and where the rolling average position over 30 working days exceeds the appropriate threshold shall be required to clear all relevant contracts within four months of becoming subject to this obligation.


[1] The Bank understands that further to the LEI ROC publication Endorsed Pre-LOUs of the Interim Global Legal Entity Identifier System (GLEIS)”  there are approximately 3,000 codes that are not certified but that have been used for CFTC reporting purposes (Uncertified Used CICIs, identified as ‘NOT CURRENT’ in the CICI Utility database); these codes are not globally recognized. 

[2] http://www.leiroc.org