EC Adopts STS Securitization and ABCP Regulation Amending MMFR
EC adopted a Commission Delegated Regulation on simple, transparent, and standardized (STS) securitizations and asset-backed commercial papers (ABCPs), requirements for assets received as part of reverse repurchase agreements, and credit quality assessment methodologies. This regulation amends and supplements amending and supplementing the Money Market Funds Regulation or MMFR (EU Regulation 2017/1131). This regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from July 21, 2018, with the exception of Article 1, which shall apply from January 01, 2019.
Article 11(1) of MMFR allows MMFs to invest in securitizations or ABCPs. A specific incentive is in place to invest in STS securitizations or ABCPs. Since the STS Securitization Regulation (EU 2017/2402) already contains requirements for STS securitizations and ABCPs, MMFR needs to be amended to cross-refer to the provisions of STS Securitization Regulation that contain those requirements. Article 11(4) of the MMF Regulation empowers EC to cross-refer to the criteria identifying STS securitization and ABCPs in the corresponding provisions of Regulation (EU) 2017/24022). The STS Securitization Regulation had not been finalized before the MMF Regulation was adopted. EC is, therefore, empowered to put in a cross-reference to the adopted and published text. The date of application of this delegated regulation should be aligned with the date of application of MMFR to ensure that all rules and requirements apply to MMFs from the same date. The date of application of the amending provision cross-referring to the criteria for STS securitizations and ABCPS should be the same as the date of application of Regulation (EU) 2017/2402.
Related Links
Keywords: Europe, EU, Banking, Securities, STS Securitization, ABCP, MMF Regulation, Regulation 2017/1131, EC
Previous Article
Donald Kohn of BoE Speaks on Use of Macro-Prudential Policy ToolsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
