Central Bank statement on Pension Scheme Arrangement clearing and trading obligation

The Central Bank welcomes the recent European Securities and Markets Supervisory Authority (ESMA) statement on the clearing and trading obligation for pension scheme arrangements (PSAs).

The Central Bank notes that the European Commission’s proposal to amend EMIR, published on 4 May 2017, (the EMIR REFIT) includes a further extension of the temporary exemption for PSAs from the clearing obligation, in view of the fact that there is not yet a suitable technical solution for the transfer of non-cash collateral as variation margins.

The Central Bank also notes the positions of the European Parliament and the Council on the EMIR REFIT proposal that appear to support the view of a further extension of the temporary exemption for PSAs from the clearing obligation (although with different lengths of the exemption between the two positions) and the link between the clearing obligation and the trading obligation under MiFIR).

The Central Bank confirms that, in accordance with the recommendation from ESMA and pending the entry into force of EMIR, the Central Bank will apply its risk-based supervisory powers in the day-to-day enforcement of applicable legislation (i.e. EMIR’s clearing obligation and MiFIR’s trading obligation) in a proportionate manner.