The European Securities and Markets Authority (ESMA) has released a detailed Consultation Paper which sets out for comment the first versions of draft Regulatory Technical Standards (RTS) on three specific areas of the revised EU Regulation on Credit Rating Agencies (CRA III). These include the detailed information requirements for structured finance transactions under Article 8b of CRA III, which make clear that ESMA is required to develop RTS on the specific information that issuers, originators and sponsors of structured finance instruments must publish (on the credit quality and underlying performance of the assets underlying the structured finance instrument, the structure of the securitisation transaction, the cash flows and any collateral supporting a securitisation exposure, as well as any information necessary to conduct comprehensive and well-informed stress tests on the cash flows and collateral values supporting the underlying exposures) on an ESMA-run website, the frequency with which that information should be updated, and the form of a standardised disclosure template for such disclosures. Read our Feature Piece on this topic in this Edition of the SCM Briefing. 

Useful links

ESMA Consultation Paper on CRA III