For a number of reasons, attempts to grow Europe’s securities issuance have worked only so-so over the last 13 years, European finance industry association AFME notes in response to a new EU consultation. Now is the right time to set things straight, it argues.

“Today’s consultation is an important step in the review of the securitisation framework in order to improve the functioning of this vital funding and capital management tool in Europe. For the last 13 years, securitisation placed issuance has struggled to exceed much more than around EUR 100 billion a year – much less than in the United States,” says AFME’s head of fixed income Richard Hopkin.

He does so in a press release, commenting on the European Commission’s publication of its consultation on the article 46 review of the Securities Regulation.

PostTrade 360 Nordic 2024

“The simple, transparent and standardised (STS) securitisation framework – a global “gold standard” – has struggled to attract new issuers and investors due to overly complex compliance requirements and only very limited recognition provided in associated capital and liquidity regulations,” Richard Hopkin continues.