EBA Publishes Draft Regulatory Technical Standards On Risk Retention Requirements Under New EU Securitization Regulations

The European Banking Authority ("EBA") published a consultation paper containing draft regulatory technical standards on risk retention requirements ("risk retention RTS") under the new European Union regulation on securitization (the "Securitization Regulation"). The new regulation is intended to lay down common rules on securitization and create a European framework for "simple, transparent and standardized" securitization.

The Securitization Regulation was signed by the President of the European Parliament and by the President of the Council of the European Union on December 12, 2017. In a memorandum, Cadwalader attorneys noted that the Securitization Regulation will apply to securitizations, the securities of which are issued (or where no securities are issued, the securitization positions of which are created) on or after the application date of January 1, 2019. As the Securitization Regulation does not contain full details of the securitization regime, the aim