For any query please contact us at email@example.com
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.
Superseded and deleted.
Superseded and deleted.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. The Feedback Statement provides details on the Central Bank’s revised model of EMIR supervision.
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 registered TRs is available on ESMA’s website.
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 Central Bank; sending trades to us will not discharge your obligation. Should there be any problems, 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 undertaken 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?
Legal Entity Identifier Codes, (LEI codes) are now available. All counterparties should ensure that they have a LEI code, that it’s renewed and that it’s used to report to TRs.
LEI codes can be obtained from any approved pre-LOUs. A full updated list of which is available on the Regulatory Oversight Committee’s website.
The Irish Stock Exchange is an approved pre-LOU.
11. When can I submit a request/ notification for an intragroup exemption?
CENTRALLY CLEARED OTC DERIVATIVE CONTRACTS
An Irish Counterparty intending to avail of an intragroup exemption or derogation (where one counterparty is established in a third country) 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 firstname.lastname@example.org to request an IGT Exemption/Derogation notification form.
NON-CENTRALLY CLEARED OTC DERIVATIVE CONTRACTS
Subject to certain criteria being met to the satisfaction of its competent authority, a counterparty can avail of an exemption/derogation under EMIR from the obligation to bilaterally exchange variation and initial margin on intragroup transactions.
There is a 6-month implementation delay (4 July 2017) from the obligation to exchange initial and variation margin on intragroup transactions. An Irish counterparty intending to avail of an exemption/derogation must, as required under EMIR, apply to/notify the Central Bank at least 3 months in advance. Therefore, an Irish counterparty wishing to avail of the exemption/derogation from 4 July 2017 should submit its complete application/notification form to the Central Bank at least three months in advance of 4 July 2017.
The Central Bank is now accepting applications/notifications; a completed application/notification form must be submitted to both the counterparty's Central Bank supervisor and the EMIR Unit (as appropriate). Please email email@example.com to request a Bilateral Margining IGT Exemption/Derogation Application/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 non-hedged positions in OTC derivative contracts that exceeds 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 derivative contracts may qualify as objectively reducing risks.
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 refer to ESMA's web page.
Notifications to the Central Bank should be sent to firstname.lastname@example.org.
15. I cannot comply with the 1st March 2017 deadline for exchange of variation margin for reasons outside of my control. What should I do?
It is a legal obligation to exchange variation margin from the 1st March 2017. However, it has been recognised by authorities across the EU and by IOSCO that there are operational challenges in meeting this deadline.
The Central Bank of Ireland applies a risk-based approach to the supervision of the adequacy of processes adopted by entities. All counterparties are expected to make every effort to move into full compliance at the earliest possible date.
While the Central Bank does not expect market participants to unwind or avoid transactions that they would have otherwise entered into, it does expect to see evidence of robust planning to achieve compliance at the earliest possible time for all in-scope transactions entered into from 1 March 2017.