Yearly archives: 2019

Valuation in Resolution

The global financial crisis 2007-09 revealed the need for developing adequate, effective tools and methods to deal with severe crises in the banking sector and for increasing financial and operational resilience of financial institutions to avoid future reliance on bank bail-outs by taxpayers’ money and to prevent contagion in the case of bank failure. Answering this need, recovery and resolution planning (RRP) has been introduced into regulation, starting in 2011 with the Financial Stability Board’s […]

PwC’s Guidance for Disclosure Requirements of Private STS Securitizations

The objective of this article is to explain how private[1] securitization can obtain the STS label by complying with the legal disclosure requirements. Following paragraphs aim to outline areas of concern to any reporting or in other way designated entity that wishes to issue and maintain STS label for its securitization. According to Article 7 (2), it is the originator, sponsor or special purpose entity that shall make the data available to third parties. As […]

Capital Markets Blog Series – Part II: The mechanisms and key objectives of the Capital Markets Union key building blocks

  Banking Union and Capital Markets Union: Objectives and state of play One of the conclusions of the financial crisis from a political and supervisory perspective was that the European banking system requires a uniform supervision across the EU. As part of the Banking Union roadmap, EU institutions agreed to establish a single supervisory mechanism (SSM), a single rulebook for banking regulation (CRD/CRR) and a single resolution mechanism (SRM) for banks. While the SSM and […]

European Commission Endorses ESMA Templates for Loan-Level Data Reporting for Securitizations

Why new templates? The European Securitization Regulation that came into force in January 2019 requires data disclosures for most securitizations originated in Europe. Compliance with the disclosure requirements will mean submission of an official set of templates of loan-level data to a securitization repository, a process that has some similarities with the disclosure of derivatives transactions under EMIR. The Regulation bestows ESMA with the power to develop the templates which then have to be endorsed […]

Capital Markets Blog Series – Part I: Capital Market Structure and Market Participants

  Capital Markets Blog Series – Part I: Capital Market Structure and Market Participants Brexit will almost inevitably initiate a transition towards a new EU27 Capital Market, needed to finance European economic growth and development in times of political uncertainty and technological disruption. Based on the publication of our Thought Paper “The Development of European Capital Markets Post-Brexit”, this blog will focus on EU27 Capital Markets structures and participants.  Further posts will focus on the […]

The tale of the Securitisation Regulation

The Regulation aims to strengthen the legislative framework for European securitization market. It is a building block of the Capital Markets Union (CMU) which contributes to the Commission’s priority objective of supporting job creation and sustainable growth. The Securitisation Regulation (SR) formed a part of Investment Plan for Europe, also known as the Juncker Plan, named after Jean-Claude Juncker, the president of European Commission at that time. The plan was officially communicated by the Commission […]

Eight months under the Securitization Regulation

As of beginning of 2019, the new Securitization Regulation applies. It consists of 48 articles and brings forth several noteworthy rules, concerning mostly disclosure practices and Simple, Transparent and Standardized (STS) framework.   The STS Framework The STS refers to a set of criteria that grant an STS label to a compliant ABS transaction. The requirements are described in articles 18 – 28 and can be broken down as follows:

BaFin and Bundesbank consult MaSanV

On 25 April 2019, BaFin, in agreement with the Deutsche Bundesbank, submitted the Mindestanforderungen an Sanierungspläne fĂĽr Institute und Wertpapierfirmen (MaSanV)[1] for consultation. The MaSanV-E will replace the MaSan after its entry into force. In addition, it will transpose into German law the EBA guidelines on the range of scenarios to be used in recovery plans (EBA/GL/2014/06) and the EBA Guidelines on the minimum list of qualitative and quantitative recovery plan indicators (EBA/GL/2015/02), and will […]

BaFin und Bundesbank konsultieren MaSanV

Die BaFin hat am 25. April 2019 im Einvernehmen mit der Deutschen Bundesbank die Verordnung zu den Mindestanforderungen an Sanierungspläne fĂĽr Institute und Wertpapierfirmen (MaSanV) zur Konsultation gestellt. Der MaSanV-E wird nach Inkrafttreten zum einen die MaSan ersetzen. DarĂĽber hinaus wird er die Leitlinien der EBA[1] ĂĽber die bei Sanierungsplänen zugrunde zu legende Bandbreite an Szenarien (EBA/GL/2014/06) und die Leitlinien der EBA zur Mindestliste der qualitativen und quantitativen Indikatoren an Sanierungspläne (EBA/GL/2015/02) in deutsches Recht […]

SRB Brexit-Positionspapier zur Abwicklungsvorbereitung

Das Single Resolution Board (SRB) hat in einem Positionspapier[1] darauf hingewiesen, dass wesentliche regulatorische Vorgaben (wie z.B. an die MREL Quote, FortfĂĽhrungskonzepte, Personalausstattung) ungeachtet des Brexits von Bankinstituten in der EU27 eingehalten werden mĂĽssen. Mit dem Brexit wird die europäische Bank Recovery and Resolution Directive (BRRD)[2] ihre Bindungswirkung fĂĽr in GroĂźbritannien ansässige Institute verlieren. Daher formuliert das SRB seine regulatorischen Erwartungen an Banken, die a) ihre Geschäfte, in eines der EU27 Länder verlagern (incoming banks), […]

SRB Brexit position paper to ensure resolvability

The Single Resolution Board (SRB) pointed out in a position paper[1]  that banks have to be compliant with essential regulatory requirements (e.g. for MREL, continuity concepts, staffing) irrespective of the upcoming Brexit. After Brexit the European Bank Recovery and Resolution Directive (BRRD) will lose its binding effect for institutions domiciled in Great Britain.[2]  The SRB therefore formulates its regulatory expectations for banks that a) relocate their operations to one of the EU27 countries (incoming banks) […]

Handels- und steuerbilanzielle Fragen bei der Portierung von Zinsderivate-Portfolien zwischen zentralen Kontrahenten

Im Zuge des Brexit entfällt das “Passporting” von Finanzdienstleistungen, und die regulatorische Anerkennung von Finanzdienstleistern im Vereinigten Königreich in der EU bedarf einer Genehmigung im Einzelfall. Die somit zu erwartende Verlagerung von Finanzgeschäften in die EU betrifft auch das Clearing von in Euro denominierten Zinsderivaten (sog. “Euro-Clearing”). Der nachfolgende Beitrag beschreibt mögliche Ăśbertragungswege fĂĽr bestehende Zinsderivate zu einem zentralen Kontrahenten in der EU und diskutiert die handels- und steuerbilanziellen Folgen. Commercial and tax balance sheet […]

Die Entwicklung der europäischen Kapitalmärkte nach dem Brexit

Es scheint kein Weg mehr daran vorbeizufĂĽhren: Das vereinigte Königreich wird die Europäische Union offiziell am 29. März 2019 verlassen, auch wenn es (hoffentlich) zu einer Ăśbergangsperiode kommt, die den Marktteilnehmern die dringend benötigte Zeit gibt, sich auf diese noch nie dagewesene Situation einzustellen. Der Brexit wird die europäischen Kapitalmärkte auf Jahre hinaus beeinflussen. Marktteilnehmer sollten daher die wesentlichen Bestimmungsfaktoren der Kapitalmarktentwicklung nach dem Brexit kennen, wenn sie strategische Entscheidungen treffen. Zum Start unseres Kapitalmarktblogs […]

The Development of European Capital Markets Post-Brexit

There seems to be no getting around it: The United Kingdom will officially leave the EU on the 29th of March 2019, even if there (hopefully) is a transition period to smooth the process and give all market participants the desperately needed time to adapt to this unprecedented situation. Brexit will change European capital markets for years to come. Market participants should know the determinants of Brexit and their impact on Post-Brexit capital market development […]

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