EBA published discussion paper on synthetic securitization framework

On September 25, 2019 EBA published a discussion paper on the simple, transparent, and standardized (STS) framework for synthetic securitization, developed in response to the mandate to EBA in the Securitization Regulation (2017/2402).

The discussion paper proposes a list of criteria to be considered when labelling synthetic securitization as "STS". The proposed STS criteria for balance-sheet synthetic securitizations include requirements on simplicity, standardization, and transparency similar to those applied to traditional securitization.

This article provides further insight on objectives of securitization and framework in force.