Latest publications and news

 

Key points on STS securitisation

Posted on March 18, 2016

As a part of the CMU, the Commission has proposed two regulations on securitisation:

  1. A Securitisation Regulation, including a newframework for simple, transparent and standardised (STS) securitisations
  2. An amendment to the Capital Requirements Regulation (CRR) which includes a more risk-sensitive capital treatment of STS securitisations as well as certain senior positions in synthetic SME securitisations (art. 270)

The aim of the legislative initiative is to revive securitisation markets in the EU, which have been subdued since the subprime crisis unlike American securitisation markets which have recovered. However, as pointed out by numerous public and private bodies, the losses from European securitisations were much lower than those from US securitisations.

At the same time, the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) are working on a framework for simple, transparent and comparable (STC) securitisation. Although similar to the STS proposal from the EU, there are certain key differences in the STC framework, for example regarding the eligibility of ACBP and synthetic securitisations. It is likely that the EU STS framework will be finalized and enter into force before the BCBS STC framework.

Capital Markets Union (CMU)

Posted on March 18, 2016

The Nordic Securities Association (NSA) supports the Commission’s plan to build a European Capital Markets Union (CMU). The Action Plan published in September 2015 reveals an ambitious plan with several important ideas; SMEs’ access to capital markets financing is eased, and barriers hampering cross-border investments within EU will be removed. These actions are necessary in order to strengthen Europe’s economy, stimulate growth, and create jobs.

CMU – an impact assessment (call for evidence and Better Regulation)

Posted on March 18, 2016

On 30 September 2015, the Commission requested input from the financial sector on the overall financial legislation under the title “Call for evidence: EU regulatory framework for financial services”. This consultation is part of the CMU Action Plan.

The consultation is closely related to the Better Regulation agenda published by the Commission on May 19th 2015. Although not a part of the CMU, the Better Regulation agenda ultimately seeks to promote growth and jobs in Europe. On December 15th 2015, the Commission endorsed a draft Inter-Institutional Agreement (IIA) on better law-making with the Council and the European Parliament. The IIA is currently awaiting final approval.

Proposal for a Regulation to revise the European Prospectus regime

Posted on February 19, 2016

The Commission proposal for a Prospectus Regulation is one of the key initiatives in the Capital Markets Union (CMU) action plan. The goal of the CMU is to widen the sources of financing to European companies and to reduce the costs related to raising capital. The NSA supports the CMU project and welcomes the Prospectus review.

Read the NSA comments here.

Concerns about Market Abuse Level 2 Regulation

Posted on January 11, 2016

The Nordic Securities Associations have examined ESMA's Final Report regarding draft technical standards on the Market Abuse Regulation.
The review gives rise to at number of concerns from an industry perspective as described below, and therefore we encourage the European Commission to take specific actions.

 

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