Transparency requirements of EU securitisation regulation to be incorporated into the Eurosystem Collateral Framework

The European Central Bank (ECB) has decided that the loan-level data reporting requirements of the Eurosystem collateral framework are to align with the disclosure requirements and registration process for securitization repositories specified in the Securitisation Regulation (Regulation (EU) No 2017/2402). The ECB decision is aimed at the promotion of efficiency and standardization in the securitization market.

The Securitisation Regulation sets out the rules for all securitization transactions and creates a framework for simple, transparent and standardized securitization. It will enhance harmonization and transparency in the securitization market and strengthen the efforts, initiated in 2013 with the establishment of the ECB’s loan-level data initiative, to support a higher degree of transparency in the asset-backed securities (ABS) market.

The disclosure requirements of the Securitisation Regulation will be reflected in the eligibility requirements for the acceptance of ABSs as collateral in the Eurosystem’s liquidity-providing operations. Also, under the Securitisation Regulation, the ECB will replace its designation process for loan-level data repositories with the registration procedure of securitization repositories by the European Securities and Markets Authority (ESMA).

Our experienced Financial Services team can help you navigate the applicable regulatory framework in Cyprus and for any enquiry or assistance please contact Dimitris Papoutsis or your usual contact at Elias Neocleous & Co LLC.