ESMA PUBLISHES FINAL REPORT FOR STS SYNTHETIC SECURITISATION NOTIFICATIONS
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has submitted its Final Report on technical standards specifying content and format of the STS notification for on-balance sheet securitisations (synthetic securitisations) to the European Commission.
The final report on draft RTS and ITS largely reflects the original proposals included in May’s consultation paper, considering the feedback received. It aims at ensuring consistency between the STS notification frameworks for traditional and synthetic securitisations.
Next steps
The draft 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.
The interim STS synthetic notification templates may be used by originators on a voluntary basis, but may be subject to change following the endorsement by the European Commission and the entry into force of the RTS/ITS.