Authorisation Process for MiFID Firms 

The Central Bank of Ireland is the competent authority in Ireland for the authorisation of Investment Firms. 

Each potential applicant for authorisation must consider whether its proposed business model:

  • requires authorisation pursuant to the MiFID Regulations;
  • can comply with the MiFID Regulations;
  • can comply with the Central Bank’s requirements and any other financial services law; and 
  • is capable of complying with, and adhering to, the requirements that must be satisfied on an ongoing basis.

Having satisfactorily completed this consideration, the potential applicant must review the Guidance Note to familiarise themselves with the authorisation process before contacting iffsauthorisation@centralbank.ie with the requisite information.

The Central Bank welcomes applications where the proposed investment firm (‘applicant’) can meet the legislative requirements relating to investment firms and all other, current, published requirements (including the recommendations and guidance issued by the European Banking Authority ('EBA') and European Securities and Markets Authority (‘ESMA’) which are available on their websites and all new requirements issued by the Central Bank).  Firms are advised to seek legal advice if in any doubt about their scope or application.

Following a review of the authorisation process in 2013 which included workshops and presentations with legal firms and industry representative bodies, the Central Bank has created a more transparent, efficient authorisation process. The Application Form has been tailored to match the risk of an applicant's business model / business strategy and the quality of the Guidance Note has been significantly improved (see documentation below). The Central Bank intends to carry out a review of this new process before the end of 2014.

 MiFID Application form

MiFID Guidance Note

 

Operation of a Multilateral Trading Facility (MTF)

The Markets Supervision Division of the Central Bank is responsible for approving the rules of an investment firm that operates an MTF. 

Additional information in relation to the operation of an MTF can be found in the Securities Markets Regulation section of this website. 

Waivers in respect of a Multilateral Trading Facility

European Communities (Markets in Financial Instruments) Regulations 2007 (as amended)

Waivers from Pre-Trade Transparency Requirements

In exercise of the powers granted to it under Regulation 68(3) and Regulation 120(2) of the European Communities (Markets in Financial Instruments) Regulations 2007 (as amended), the Central Bank has decided to grant the following waiver:

Regulation 120 – Pre-trade Transparency Requirements for Multilateral Trading Facility 

The pre-trade transparency requirements set out in Regulation 120(1) of European Communities (Markets in Financial Instruments) Regulations 2007 (as amended) will not apply to investment firms operating a multilateral trading facility or to market operators operating a multilateral trading facility to the extent that their systems satisfy one of the following criteria:

  1. they must be based on a trading methodology by which the price is determined in accordance with a reference price generated by another system, where that reference price is widely published and is regarded generally by market participants as a reliable reference price.
  2. they formalise negotiated transactions, each of which meets one of the following criteria:
  • it is made at or within the current volume weighed spread reflected on the order book or the quotes of the market markers of the regulated market or MTF operating that system or, where the share is not traded continuously, within a percentage of a suitable reference price, being a percentage and a reference price set in advance by the system operator;
  • it is subject to conditions other than the current market price of the share.

For the purposes of point (2), the other conditions specified in the rules of the MTF for a transaction of this kind must also have been fulfilled.

In the case of systems having functionality other than as described in the above criteria, the waiver shall not apply to that other functionality.

A waiver from the pre-trade transparency requirements set out in Regulation 120(1) of European Communities (Markets in Financial Instruments) Regulations 2007 (as amended) may be granted to investment firms operating a multilateral trading facility or to market operators operating a multilateral trading facility based on the type of orders but only in relation to orders held in an order management facility maintained by the MTF pending their being disclosed to the market.   

The pre-trade transparency requirements set out in Regulation 120(1) of European Communities (Markets in Financial Instruments) Regulations 2007 (as amended) will not apply to transactions that are large in scale compared with transactions of normal market size for the share or type of share in question, as set out in Article 20 of Commission Regulation (EC) No 1287/2006.