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- The UK-based credit rating agencies whose registration was withdrawn include AM Best Europe-Rating Services Ltd, DBRS Ratings Ltd, Fitch Ratings Ltd, Fitch Ratings CIS Ltd, Moody’s Investors Service Ltd, and The Economist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- The UK-based trade repositories whose registration was withdrawn include DTCC Derivatives Repository Plc, UnaVista Limited, CME Trade Repository Ltd, and ICE Trade Vault Europe Ltd.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
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.
