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November 2019
By Tom Ahern
On 16 October 2019, the European Commission adopted European Securities and Markets Authority’s (ESMA) regulatory technical standards (RTS), which prescribe applicable templates and other operational requirements for transparency and disclosure under the European Securitisation Regulation.
Disclosures and reporting required under Article 7 for most Collateral Loan Obligations (CLOs) include:
For public CLOs there is expected to be an additional disclosure requirement for significant events and/or inside information, which has to be made without delay.
The final templates will likely come into effect early in the first quarter of 2020. The Regulation requires new data on assets to be made available. As a typical CLO will have over 100 assets, dealing with the volume of data will be challenging.
As a result, in just a few short months the CLO market must ready itself for a significant shift from existing reporting practices. The prospect of this shift raises several questions for the CLO market:
BNY Mellon is here to help you support these new reporting requirements. Read our Q&A “European Securitisation Regulation: What’s Next For CLOs” to find out more.