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
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
