ESMA Consults on ESG Ratings and Launches STS Securitizations Register
The European Securities and Markets Authority (ESMA) publishes a Call for Evidence on environmental, social, and governance (ESG) to gather information on the market structure, revenue, and product offerings for ESG rating providers in the European Union. The Call is mainly addressed to ESG rating providers, users of ESG ratings, and entities subject to rating assessment of ESG rating providers and the responses to the questionnaire can be submitted by March 11, 2022. The feedback received will be shared with the European Commission, as a part of a separate consultation on the use of ESG ratings by market participants and the functioning and dynamics of the market (expected before the second quarter of 2022). In addition, ESMA launched its Simple, Transparent and Standardized (STS) Register for the notification of securitizations under the Securitization Regulation.
ESMA has put in place an automated process to facilitate notification of securitizations meeting the STS criteria that are eligible for STS label and makes them available in the new STS register. The STS register replaces the previous interim solution of an STS list on the ESMA website. It will allow originators and sponsors to benefit from an enhanced notification system and will provide investors and supervisors with improved access to individual STS securitizations to assist them in performing their respective due diligence and supervisory tasks. The STS Register covers traditional STS securitizations (non-ABCP securitizations, ABCP securitizations, and ABCP programs). The interim STS notification is still applicable to synthetic STS securitizations though. Originators and sponsors are expected to continue sending notifications of synthetic securitizations eligible for the STS label using the interim STS solution, until further notice by ESMA.
Related Links
- Press Release on Call for Evidence
- Call for Evidence on ESG Ratings (PDF)
- Questionnaire for Participants
- Press Release on STS Register
Keywords: Europe, EU, Banking, Securities, STS Securitization, Synthetic Securitization, Reporting, Securitization Regulation, ESG, STS Register, ESG Ratings, EC, CRAs, ESMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
FSC Taiwan Issues Multiple Regulatory UpdatesNext Article
ESRB Responds to EC Proposal on Solvency II ReviewRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
