STS easy as STC, easy as 1, 2, 3. Or is it?

As part of its Capital Markets Union initiative, the European Commission is seeking to create a single Securitisation Regulation to bring together all existing European Regulations and Directives covering securitisation. Part of this Regulation will establish a framework for simple, transparent and standardised securitisation.

This paper reviews Articles 8, 9 and 10 of the draft Securitisation Regulation published by the European Commission in November 2015 and identifies some of the challenges posed by the regulation of simple, transparent and standardised securitisations.

It is our Bank Treasury Advisory team’s view that implementation of the STS criteria in the context of a single regulation for securitisation could have a significant positive effect on reviving the market, through addressing longstanding concerns about regulatory uncertainty.

The paper will be of interest to securitisation transaction originators, sponsors, arrangers and investors as well as those thinking of entering the securitisation market.

Deloitte Bank Treasury Advisory team

The team provides advisory services to banking clients, within the UK and internationally. Consisting of industry specialists, regulatory experts and professional services practitioners, the team offers a rounded and unique skillset; able to provide bespoke services and solutions.