ESMA Withdraws Licenses of UK-Based CRAs and Trade Repositories
ESMA withdrew registration of several credit rating agencies and trade repositories for various reasons. ESMA also published the annual market share calculation for credit rating agencies registered in EU. The purpose of the market share calculation is to facilitate issuers and related third parties in their evaluation of a credit rating agency with no more than 10% total market share in EU. This calculation is required by the Credit Rating Agencies Regulation, with the aim of encouraging issuers and related third parties to appoint smaller credit rating agencies.
ESMA withdrew the credit rating agency registration of INC Rating Sp. z o.o., as it has effectively stopped its rating services. ESMA also withdrew Kroll Bond Rating Agency LLC’s ability to certify its credit ratings for use in EU. The withdrawal decision follows the official notification sent to ESMA by Kroll LLC on 23 July 2020 of its intention to renounce its ability to certify credit ratings for use in the EU under the conditions set out in Article 20(1)(a) of the CRA Regulation. Following the removal of Kroll LLC’s certification status, Kroll Bond Rating Agency EU will continue to issue credit ratings and will endorse some of the credit ratings of Kroll LLC for use in the EU. More recently, post Brexit, ESMA also withdrew the registrations of the following UK-based credit rating agencies and trade repositories:
- The UK-based credit rating agencies whose registration was withdrawn include AM Best Europe-Rating Services Ltd, DBRS Ratings Ltd, Fitch Ratings Ltd, Fitch Ratings CIS Ltd, Moody’s Investors Service Ltd, and The Economist Intelligence Unit Ltd.
- The UK-based trade repositories whose registration was withdrawn include DTCC Derivatives Repository Plc, UnaVista Limited, CME Trade Repository Ltd, and ICE Trade Vault Europe Ltd.
Related Links
- Press Release on UK Entities
- Press Release on Kroll Bond Rating LLC
- Press Release on INC Rating
- Press Release on Annual Market Share
Keywords: Europe, EU, Banking, Securities, Credit Rating Agencies, CRA Regulation, Trade Repositories, Brexit, ESMA
Previous Article
CBE Publishes Circular on Management of Operational Risk by BanksRelated Articles
BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
FCA Registers Securitization Repositories; PRA Issues 2022 Priorities
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
EC Regulation Sets Out Methods for Measuring K-Factors Under IFR
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
BIS Studies How Platform Models Impact Financial Stability & Inclusion
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
CBE Issues Additional Measures to Ease Disruptions from Pandemic
The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.
ESAs Publish List of Financial Conglomerates for 2021
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
