Market Standards and Practices
19 February, 2009
RMBS Issuer Principles for Transparency and Disclosure
The ESF have finalised RMBS Issuer Principles for Transparency and Disclosure and two data reporting templates for RMBS issuers to be used in conjunction with the principles. These are the ESF Prime RMBS Standardised Reporting Template and a new combined uniform Credit Rating Agency Reporting Template for UK Non-Conforming RMBS. This release represents initiatives four, eight, and nine of the Ten Industry Initiatives to Increase Transparency in the Securitisation Markets committed to the European Commission, delivered as promised and on schedule.
Download:
RMBS Issuer Principles for Transparency and Disclosure December 08 | .pdf
Credit Rating Agency Unified Template for UK Non-Conforming, December 2008 | .xls | .pdf
Prime RMBS Standardised Reporting Template December 2008 | .xls | .pdf
12 May, 2008
Industry Associations Exposure Draft of Structured Products: Principles for Managing Distributor-Individual Investor Relationship
The ESF, together with ICMA, ISDA, LIBA and SIFMA, have released an exposure draft of principles for managing distributor-individual investor relationships for structured finance. Broadly, although these principles are non-binding (being intended primarily to help inform firms’ thinking) and do not create enforceable obligations or duties, firms involved in the distribution of structured products to individual investors are encouraged to reflect these principles in their policies and procedures.
8 February, 2008
Summary of European Industry Commitments to the European Commission regarding Transparency in the European Securitisation Market PDF
This letter, sent to the EC 8 February, 2008, outlines the initiatives currently being undertaken by the major European trade associations the concerns expressed by policy makers and politicians relating to transparency and disclosure in the European securitisation market. Insofar as it relates to current initiatives being undertaken by the ESF to improve European securitisation market standards, we have included it here.
13 December, 2007
ESF Standardised Loan by Loan Data File Template for UK Non-Conforming RMBS PDF
Starting from January 2008 for new transactions, the ESF has been recommending a standardised format for data files related to the performance of UK non-conforming RMBS. The aim is to encourage issuers and trustees to publish loan-by-loan data in a consistent manner for use by investors, rating agencies and other market participants. The new standards include 141 fields with a specific definition and a set of permissible values. Among the various fields 87 have been identified as priority fields as they are key for the risk assessment of the underlying loans. From an investor and issuer perspective, the benefits in the recommended standards are increased transparency, consistency of information and potentially improved market liquidity.
12 December 2007
Exposure Draft of the ESF CDO Data File Format
The ESF is pleased to release the exposure draft of the Collateralised Debt Obligations (CDOs) Data File Format. In order to improve the efficiency, transparency, and usefulness of reporting on CDOs, the ESF, in concert with market participants, is recommending a standardised format for data files related to the performance of CDO transactions that are disseminated on a regular basis by trustees to investors and other interested parties.
A key benefit is that the standardised, machine readable format for the data file will allow users to process the vast amount of data that are provided in reports on CDO transactions more quickly and efficiently. An end user should be able to process and manipulate data files from any trustee that produces compliant files with a single import process. Standardised values for specific fields will enable the users of the files to compare deals on a like-for like basis, with assurance that the data points will be reported in the same context manner no matter the origin of the report. The standardised values will help to eliminate confusion that arises when similarly named fields have different meanings depending on which trustee created the report. For more information on how it works, please click here.
July, 2007
Retail Structured Products: Principles for managing the provider-distributor relationship PDF
Released in association with ICMA, ISDA, LIBA, and SIFMA, these principles seek to address issues that financial services firms have in practice found helpful to consider when performing the function of either provider or distributor in connection with the process of delivering structured products to retail investors. The Principles are non-binding and are intended purely to help inform firms' thinking for managing the provider-distributor relationship in retail structured products markets globally. The sponsoring associations believe market participants should be free to agree their relationships and relative responsibilities on a case-by-case basis, to the extent these are not prescribed by local law or regulation.
December, 2006
Market Guidelines in Relation to the Market Abuse Directive For European ABS and CMBS Transactions PDF
Based on feedback received from members active with the ESF and the Commercial Mortgage Securities Association, these Market Guidelines are meant to assist ABS and CMBS market participants in dealing with the above-summarised issues and thus in complying with the MAD requirements for assessment and disclosure of inside information in transaction post-issuance reporting.
16 May, 2006
ESF's Securitisation Market Practice Guidelines PDF
The Guidelines are a set of recommendations that the Forum holds out as best practices for securitisation industry participants. They are aimed at improving the quality, uniformity and availability of pre- and post-issuance reporting for European securitisation transactions, as well as, promoting consistent trading practices for securitisation through a standardisation process of formulas and assumptions which ultimately results in increased liquidity. The ESF has been regularly updating and expanding these recommendations since 1998. More recently, the ESF fully reorganised and updated the entire structure of these recommendations in order to make them more easily accessible and user friendly. The Guidelines are also intended to provide a common ground of terms and requirements for publishing, confirming and comparing information regarding European asset and mortgage-backed securities.
