May 04, 2018

ESAs launched two joint consultations to amend regulatory technical standards on the clearing obligation and risk mitigation techniques for uncleared OTC derivatives. The standards aim to amend the current European Market Infrastructure Regulation (EMIR) on the clearing obligation and risk-mitigation techniques on OTC derivatives not cleared by central counterparties (CCPs), to provide a specific treatment for simple, transparent, and standardized (STS) securitization. Comments to these consultations can be sent to EBA and ESMA until June 15, 2018.

The securitization regulation and the amended EMIR provide a specific treatment for STS securitizations in relation to the clearing obligation and on risk-mitigation techniques on non-cleared OTC derivatives frameworks. The consultation on the draft regulatory technical standards on the clearing obligation clarifies which arrangements under covered bonds or securitizations adequately mitigate counterparty risk and, thus, may benefit from an exemption from the clearing obligation. The consultation on the draft regulatory technical standards on risk-mitigation techniques aims to extend the type of special treatment currently associated with covered bonds to STS securitizations. The proposed treatment—that is, no exchange of initial margins and collection only of variation margins—is applicable only where the STS securitization structure meets a specific set of conditions equivalent to the ones required for covered bonds issuers to be able to benefit of that same treatment. ESAs have developed these two consultation papers in accordance with Articles 4 and 11 of EMIR, as amended under Article 42 of the Securitization Regulation. 

 

Related Links

Comment Due Date: June 15, 2018

Keywords: Europe, EU, Banking, Insurance, Securities, Regulatory Technical Standards, EMIR, Securitization Regulation, STS Securitization, ESAs

Related Articles
News

EBA Report Assesses Regulatory Framework for Fintech Activities

EBA published the findings of its analysis on the regulatory framework applicable to fintech firms when accessing the market.

July 18, 2019 WebPage Regulatory News
News

OSFI Revises Capital Requirements for Operational Risk for Banks

OSFI is revising its capital requirements for operational risk, in line with the final Basel III revisions published by BCBS in December 2017.

July 18, 2019 WebPage Regulatory News
News

OSFI Consults on Revised Principles for Management of Liquidity Risk

OSFI proposed revisions to Guideline B-6 on the principles for the management of liquidity risk.

July 18, 2019 WebPage Regulatory News
News

ESMA Guidance on Disclosures for Credit Rating Sustainability Issues

ESMA published the technical advice on sustainability considerations in the credit rating market, along with the final guidelines on disclosure requirements applicable to credit ratings.

July 18, 2019 WebPage Regulatory News
News

FASB Issues Q&A on Estimation of Expected Credit Losses by Firms

FASB issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to the Accounting Standards Update No. 2016-13 titled “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”

July 17, 2019 WebPage Regulatory News
News

US Agencies Delay Enforcing Volcker Rule Restrictions on Foreign Funds

US Agencies (FDIC, FED, and OCC) announced that they will not take action related to restrictions under the Volcker Rule for certain foreign funds for an additional two years.

July 17, 2019 WebPage Regulatory News
News

SRB Announces SRF Receives Cash Injection, Grows to EUR 33 billion

SRB announced that the Single Resolution Fund (SRF or the Fund) received a cash injection of EUR 7.8 billion from 3,186 institutions in 2019, bringing the total amount in the Fund to about EUR 33 billion.

July 17, 2019 WebPage Regulatory News
News

FASB to Propose to Delay CECL Compliance Deadline for Certain Entities

FASB published a summary of the tentative decisions taken at its Board meeting in July 2019.

July 17, 2019 WebPage Regulatory News
News

IMF Publishes Report on 2019 Article IV Consultation with Vietnam

IMF published its staff report in context of the 2019 Article IV consultation with Vietnam.

July 16, 2019 WebPage Regulatory News
News

European Parliament Elects Next President of European Commission

European Parliament elected Ursula von der Leyen from Germany as the first female President of the next European Commission for a five-year term from November 01, 2019.

July 16, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3476