ESMA published its annual market share calculation for EU registered credit rating agencies (CRAs) for 2019. The results show that the three largest CRAs—S&P Global Ratings, Moody’s Investor Service, and Fitch Ratings—account for 92.1% of the market for credit rating agencies in EU, representing a 2.7% increase on 2018. The remaining 7.9% of the market is shared between the other 23 CRAs that are registered in EU. The annual market share calculation also provides a breakdown of the type of ratings offered by each registered CRA as well as the proportion of ratings for EU debt issuance by asset class. This market share calculation is valid for use from its date of publication and is applicable until the date of publication of the next Market Share Calculation in 2020.
The CRA Regulation, under Article 8d, specifies that issuers and related third parties are required to consider appointing a CRA with no more than 10% total market share whenever they intend to appoint one or more CRAs to rate an issuance or entity. The report on the CRA market share calculation provides background and guidance on how the market share calculation should be used by issuers or related third parties. It also provides information on how the market share is calculated, a list of CRAs registered in EU along with their percentage of total market share by revenue, and an overview of the type of credit ratings offered by each CRA registered in the EU. The report shows the proportion of EU debt issuance for each asset class rated by individual CRAs, along with details on the Common Supervisory Approach and Standard Form adopted by ESMA members in respect of Article 8d.
Keywords: Europe, EU, Banking, Insurance, Securities, Market Share Calculation, CRA, CRA Regulation, MIS, Fitch Ratings, S&P, Credit Risk, ESMA
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.