General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
July 16, 2018

ESMA issued the first set of technical standards under the Securitization Regulation, which contain both draft regulatory and implementing standards (RTS/ITS). The standards include draft regulatory technical standards specifying the information that the originator, sponsor, and Securitization Special Purpose Entity (SSPE) are required to provide to comply with the STS notification obligations (Article 27(6) of the Securitization Regulation). They also include draft implementing technical standards to establish the templates to be used for the provision of the STS notification (Article 27(7) of the Securitization Regulation) and the draft regulatory technical standards specifying the information to be provided to the competent authorities in the application for the authorization of a third party to assess the compliance of securitizations with the STS criteria (Article 28(4) of Securitization Regulation).

With respect to the notification templates for STS securitizations, the draft technical standards specify the information and format that the originators and sponsors of securitization products are required to notify to ESMA if a securitization transaction meets the STS requirements. The STS notification is a necessary step to apply for STS preferential capital treatment. The STS notification standardized templates distinguish between non-Asset Backed Commercial Paper (ABCP) securitization, ABCP transaction, and ABCP program. The STS notification needs to include a confirmation, concise explanation, or detailed explanation about why the securitization transaction satisfies each of the STS criteria. This obligation is proportionate, as some criteria require greater explanation than others. The notification process also includes a cross-referencing system to investment prospectuses, if any, to avoid duplication of disclosure requirements.

The technical standards contain detailed arrangements to implement the new European regulatory framework for securitizations, which is intended to promote simple, transparent, and standardized (STS) securitizations. ESMA has submitted for endorsement its final draft regulatory and implementing standards to EC. These standards will contribute to delivering a regulatory rulebook for European securitization markets. Regarding the joint ESA technical standards on the clearing obligation under the amendments to EMIR introduced by the Securitization Regulation, ESAs inform that they will require additional time beyond the July 18, 2018 deadline for finalization of the draft technical standards.These standards shall enter into force on the twentieth day following that of their publication in the Official Journal of the European Union. The regulatory technical standards on information to be provided in the application for the authorization of a third party verifying STS compliance shall apply from January 01, 2019.

 

Related Links

Keywords: Europe, EU, Banking, Securities, STS Securitization, STS Verification, Technical Standards, Securitization Regulation, ABCP Securitization, Notification Templates, ESMA

Related Insights
News

HKMA Announces Intention to Consult on Updated BCBS Disclosure Rules

HKMA announced that it will consult the industry in due course on the relevant implementation proposal to give effect to the disclosure requirements of the December 2018 package by BCBS.

December 17, 2018 WebPage Regulatory News
News

US Agencies Propose Derivative Counterparty Credit Exposure Framework

US Agencies (OCC, FED, and FDIC) proposed to implement a new approach for calculating the exposure amount of derivative contracts under the regulatory capital rule.

December 17, 2018 WebPage Regulatory News
News

HKMA Issues and Revises Reporting Forms Under the IRRBB Framework

HKMA issued a revised version of the Supervisory Policy Manual (SPM) IR-1, with an updated title “Interest Rate Risk in the Banking Book” (IRRBB).

December 14, 2018 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Second Update for December 2018

EBA published answers to six questions under the Single Rulebook question and answer (Q&A) updates for this week.

December 14, 2018 WebPage Regulatory News
News

OSFI Proposes Changes to Guideline on Large Exposure Limits

OSFI proposed revisions to the Guideline B-2 on Large Exposure Limits, for implementation in the first quarter of 2020.

December 13, 2018 WebPage Regulatory News
News

BCBS Consults on Disclosure Rules for Leverage Ratio Window-Dressing

BCBS published a consultative document on revisions to the leverage ratio disclosure requirements to address the leverage ratio window-dressing behavior.

December 13, 2018 WebPage Regulatory News
News

PRA Updates the Policy on Approach to Systemic Risk Buffer

PRA published the final Statement of Policy on the PRA approach to the implementation of the systemic risk buffer (SRB), as proposed in the consultation paper CP29/18.

December 13, 2018 WebPage Regulatory News
News

EP Report Examines Financial Supervision and Regulation in US

European Parliament published a report that provides a concise overview of the Dodd-Frank Act, the challenges of its implementation, and efforts to roll back the Act, in large part due to what are viewed to be vague and impractical provisions.

December 12, 2018 WebPage Regulatory News
News

FED Proposes to Revise Several Reporting Forms Including FR Y-9C

FED proposed to extend for three years, with revision, the FR Y-9, FR Y-7N, FR Y-11, and FR 2314 family of reports, in addition to the forms FR 2886b, FR Y-8, FR 2248, FR 2320, FR 2644, and FR 2886b.

December 12, 2018 WebPage Regulatory News
News

EBA Finalizes Guidelines on the STS Criteria in Securitization

EBA published the final guidelines that provide a harmonized interpretation of the criteria for a securitization to be eligible as simple, transparent, and standardized (STS) on a cross-sectoral basis throughout EU.

December 12, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2340