The most anticipated release of the year is out, and it’s not “The Joker”

Apologies for the slight delay in bringing out this news, but the PCS team has  been most busy this week.  On Wednesday though, the European Commission finally brought out the keenly awaited data RTS, including the many annexes.

This sets out the data disclosure requirements that will apply to all European securitisations.  (We should note here that the vexed issue of what qualifies as a “European securitisation” for these purposes remains unsettled – do the data requirements apply only to securitisations issued by European entities or do they apply to all securitisations sold in Europe, so snaring non-European issuers).

This draft RTS is now laid before the European Council and the European Parliament for 3 months.  During that period either may object and veto the RTS.  This is not expected though in view of the exceedingly technical nature of this document.  (For full disclosure, the 3 month period could be extended by another 3 months but, again, this is extremely unlikely).  Once the 3 month period has expired without objection, the RTS is published in the Official Journal (usually a matter of a few days, maybe weeks).  Twenty days after publication it is law.

This means that, in all likelihood unless there is a market revolt, the new data requirements will come into force late January or early February.