The EU Securitisation Regulation took effect on 1 January 2019,
bringing a new Simple, Transparent and Standardised (STS) label for
securitisations that meet strict eligibility criteria. Arno Vink
and Edwin van Ankeren, Capital Markets Netherlands, discuss what
the new regulation and STS designation mean, and how firms can
satisfy their expanded disclosure obligations.
The Securitisation Regulation seeks to enhance the safety,
liquidity and harmonisation of Europe's securitisation market,
and is a cornerstone of the EU's Capital Markets Union. To
further these goals, the STS designation has been introduced to
differentiate simple products from more opaque and complex ones,
and make it easier for investors to understand and assess the risks
of investing in a securitisation.
