Central Bank of Ireland publishes Markets Update No 4 of 2024

On 26 April 2024, the Central Bank of Ireland (the Central Bank) published Issue No 4 2024 of its regular Markets Update, in which it sets out alerts of interest to Irish regulated firms and other market participants.

For our summaries of the previous issues, please see the right-hand column of this page.

The new Update contains the following four items

• EMIR clearing obligation for third-country pension scheme arrangements - supervisory actions to be deprioritised in light of the agreement on the EMIR review

  On 27 March ESMA issued a Public Statement, noting that it expects NCAs not to prioritise supervisory actions in relation to the clearing obligation for transactions conducted with TC PSAs exempted from the clearing obligation under their third country's national law, given the challenges stakeholders would face if they had to comply with the requirement until EMIR 3 enters into force.

  Instead, NCAs should generally apply their risk-based supervisory powers in the day to-day enforcement of applicable legislation in a proportionate manner.

• EBA Guidelines on the application of the group capital test for investment firm groups

  On 11 April, the EBA published final Guidelines on the application of the group capital test set out in Article 8 of the Investment Firms Regulation.

  The Guidelines identify criteria to assist NCAs assess the simplicity of the group structure and the significance of the risk posed to clients and the market.

• ESMA - Call for expressions of interest in Consultative Working Group for CDWG, SMWG and PTWG

  On 19 April, ESMA published a Joint Call for Expressions of Interest in joining any of three newly established Consultative Working Groups - the Secondary Markets Working Group (SMWG), the Commodity Derivatives Working Group (CDWG) and the Post Trading Working Group (PTWG).

     Applications should be made by 29 May 2024.

• Revised MiFIR legislative text enters into force

  The revised Markets in Financial Instruments Regulation (MiFIR) entered into force on 28 March 2024

  The European Commission’s draft interpretative notice to provide clarity to market participants on the MiFIR transitional provision, published on 27 March 2024, can be found here.

  ESMA’s statement clarifying the application of certain MiFIR provisions, including the volume cap mechanism, can be found here.