BCBS and IOSCO publish a consultation paper on STC short-term securitisations

The Basel Committee (BCBS) and IOSCO have published for consultation the criteria for identifying simple transparent and comparable (STC) short-term securitisations.

The proposed criteria follow on from the STC models published in July 2015 for term securitisations. While all principles underlying the STC criteria for term securitisations are relevant for short-term securitisations, some criteria have been amended to reflect specific aspects of Asset-backed commercial paper (ABCP) conduits, in particular:

  • the short maturity of the commercial paper issued by ABCP conduits;
  • the different forms of programme structures (multi-seller, single seller); and
  • the existence of multiple forms of liquidity and credit support facilities on different levels of the ABCP structure (i.e. conduit level or transaction level).

The deadline for responses to the consultation, and a concurrent BCBS consultation on capital treatment, is 5 October 2017 and BCBS-IOSCO aims to publish its final rules for STC short-term securitisations “within an appropriate time frame”, taking into account the expectation that the BCBS’ revised securitisation framework should be implemented by January 2018.