The European Securities and Markets Authority (ESMA), the EU’s securities and markets regulator, has published the interim simple, transparent and standardised (STS) notification templates for synthetic securitisations following amendments to the Securitisation Regulation (SECR).
The interim templates allow originators to notify ESMA of synthetic securitisations that meet the STS criteria.
The amended SECR was published in the Official Journal of the European Union on 6 April and enters into force today. The amended SECR extends the STS framework to synthetic securitisations. As with traditional securitisations, only those synthetic securitisations that meet pre-defined STS requirements will be published on ESMA’s website.
Until the date of the application of the Regulatory Technical Standards (RTS) specifying the content and the format of STS notifications for synthetic securitisations, originators can make the necessary information available to ESMA in writing during the interim period. ESMA makes available, in its website (LINK to the “STS securitisation notification” section), interim STS synthetic notification templates that originators can use to ensure consistency across all STS notifications.
The interim STS notification templates may be used by originators on a voluntary basis which may be subject to possible changes following the entry into force of the RTS.