ESMA published the final report on the guidelines on securitization repository data completeness and consistency thresholds. The guidelines provide clarity to market participants and securitization repositories on the accepted levels of No-Data options contained in the securitization data submitted to securitization repositories. ESMA also provided an overview of the feedback received from stakeholders during the consultation on the guidelines as well as the ESMA response to that feedback. In addition, ESMA has released a list of designated competent authorities under the Securitization Regulation.
The majority of feedback received during the public consultation was supportive of the data completeness and consistency thresholds. Following feedback received during the consultation, ESMA has further developed and clarified some requirements in the guidelines. Based on the feedback received, ESMA has increased, from 20, to 35, the tolerance thresholds for both the legacy assets field threshold (that is, Threshold 1 in Annex A of the Guidelines) and the legacy IT systems field threshold (that is, Threshold 2 in Annex A of the Guidelines), for the Corporate underlying exposure template, with a view to tightening these thresholds over time once market participants have gained experience with the ESMA reporting requirements.
The objectives of these guidelines are to establish consistent, efficient, and effective supervisory practices within the European System of Financial Supervision and to ensure the common, uniform, and consistent application of the Securitization Regulation. The finalized guidelines achieve these objectives by describing thresholds for when the use of No-Data Options prevent the data submission from being "sufficiently representative of the underlying exposures in the securitization" within the meaning of Article 4(2)(d) of the Securitization Repository Operational Standards Delegated Regulation. ESMA will consider these guidelines for supervisory purpose as of January 01, 2021.
Keywords: Europe, EU, Banking, Securities, Securitization, Securitization Regulation, Securitization Repositories, No Data Options, Reporting, Designated Competent Authorities, ESMA
Previous ArticlePRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.