EDW responds to various consultations relating to the review of the EU Securitisation Framework and NPLs
As an ESMA-registered Securitisation Repository under the Securitisation Regulation (EU) 2017/2402 (SECR), European DataWarehouse has recently submitted responses to a number of consultations.
These include the EC Targeted Consultation on the Functioning of the EU Securitisation Framework, the EBA Discussion Paper (DP) on NPL Data Templates, and the EC Targeted Consultation on Improving Transparency and Efficiency in Secondary Markets for Non-Performing Loans (NPLs).
EC Targeted Consultation on the Functioning of the EU Securitisation Framework
This consultation is aimed at collecting stakeholders’ views on a broad range of topics including the effects of the SECR, private securitisations, equivalence regime for STS securitisations, environmental performance, and sustainability disclosures.
EDW provided its feedback on the following topics:
- Private securitisations – The definition of what constitutes private and public securitisations is important for the development and the well-functioning of the securitisation market.
- Due diligence and jurisdictional scope – EDW commented on the usefulness of loan-level data. Also, from an SR perspective, any EU or third country sell-side entity could register and use its services to meet the respective regulatory reporting requirements.
- Sustainability disclosure – In order to promote a sound and safe development of the EU sustainable securitisation market, there is a need for a clear and standardised definition of sustainable securitisation, as well as alignment of sustainability disclosures across different regulatory reporting regimes.
EBA Discussion Paper (DP) on NPL Data Templates
This discussion paper is aimed at collecting stakeholders’ feedback on the review of the standardised NPL data templates.
EDW’s response can be summarised in the following two points:
- The revised EBA templates have a simplified data structure which is more in line with the current market standards
- Due to its longstanding experience with the technical implementation of various data reporting templates, EDW has provided the relevant technical feedback to EBA. Content relevant feedback was also provided where necessary.
EC Targeted Consultation on Improving Transparency and Efficiency in Secondary Markets for Non-Performing Loans (NPLs)
The consultation is aimed at collecting stakeholders’ views on the remaining obstacles to the proper functioning of secondary markets for NPL s as well as possible actions that it could take to foster these markets by improving the quantity, quality, and comparability of NPL data.
EDW’s response can be summarised as follows:
- Establishment of an EU NPL data hub – EDW believes that market transparency is key for the further development and well-functioning of the NPL market followed by the relevant regulatory incentives
- Leveraging on existing market infrastructures by means of a public tender
- Regulatory action (incentives or disclosure requirement) is important for the reporting of data to the EU NPL data hub
- Robust data governance with harmonised data definitions and structure and the ability to link to other regulatory NPL data is necessary
- A potential extension of the scope of disclosures should take into consideration any existing regulatory or supervisory reporting. Also, any new disclosure requirements should be introduced in a phased approach and with grandfathering provisions.