ESMA Finalizes Notification Standard for STS Synthetic Securitizations
The European Securities and Markets Authority (ESMA) published the final report on technical standards specifying content and format of the simple, transparent, and standardized (STS) notification for on-balance sheet securitizations (synthetic securitizations) to the European Commission. The final report on draft regulatory and implementing technical standards largely reflects the original proposals included in the May consultation paper. The interim STS synthetic notification templates may be voluntarily used by originators and are subject to change, following an endorsement by the European Commission and the entry into force of these associated regulatory and technical implementing standards.
The final standards are aimed at ensuring consistency between the STS notification frameworks for traditional and synthetic securitizations. Annex IV to this report contains the final draft regulatory technical standards amending the standards laid down in the Commission Delegated Regulation (EU) 2020/1226 with regard to information on STS notifications for on-balance-sheet securitization. Additionally, Annex V to this report contains the final implementing technical standards amending the standards laid down in the Commission implementing Regulation (EU) 2020/1227 with regard to the templates regarding STS notification for on-balance-sheet securitizations. The draft regulatory and implementing technical standards have been submitted to the European Commission for endorsement. In the meantime, originators can make the necessary information available to ESMA by using the interim STS synthetic notification templates. The templates have been updated to reflect changes that have been made following the public consultation on interim STS notification templates in April 2021.
Related Links
Keywords: Europe, EU, Banking, Securities, STS Securitization, Synthetic Securitization, Notification Templates, Reporting, Securitization Framework, Securitization Regulation, EMIR
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
APRA Connect to Go Live; APRA to Reduce Reliance on CLFRelated Articles
APRA Penalizes Heritage Bank for Incorrect Reporting of Capital
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
OSFI Releases Annual Report 2021-2022
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
APRA Finalizes Guidance on Management of Climate Change Risks
The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.
EBA Publishes Single Rulebook Q&A Updates in November 2021
The European Banking Authority (EBA) Single Rulebook Question and Answer (Q&A) tool updates for this month include answers to 10 questions.
EC Proposes New Measures Under Capital Markets Union Package
The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.
European Council Adopts Position on Digital Finance Package Proposals
The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).
PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window
The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.
FED Outlines Lending Conditions and Supervisory Activities in H1 2021
The Board of Governors of the Federal Reserve System (FED) published a report that summarizes banking conditions in the United States, along with the supervisory and regulatory activities of FED.
EBA Publishes Standards to Calculate Risk-Weights of CIUs Under CRR
The European Banking Authority (EBA) published the final report on draft regulatory technical standards for the calculation of risk-weighted exposure amounts of collective investment undertakings or CIUs, in line with the Capital Requirements Regulation (CRR).
APRA Expects Boards to Strengthen Ability to Oversee Cyber Resilience
The Australian Prudential Regulation Authority (APRA) recently completed two pilot initiatives in its 2020-2024 Cyber Security Strategy, which was published in November 2020.
