An STS Securitization Checker is designed to guide the user through the complex STS requirements to assess whether STS treatment applies to a transaction in accordance with Regulation (EU) 2017/2402 (the Securitisation Regulation) and Regulation (EU) 2017/2401 (the Securitisation Prudential Regulation).
This interactive tool ensures a consistent approach in checking standard requirements against the information provided by a financial institution, fund or law firm minimizing the potential for human error. As the user inserts information about the timeframe of the securitization, the location of the parties and the material details of the transaction, the tool assesses the eligibility under the STS guidelines and further guides the user through an assessment of main requirements such as the risk retention and credit granting criteria. The tool outputs the required ESMA submission forms and auto-populates these to streamline an otherwise burdensome submission process. This not only saves time for the submitting party but also for ESMA officials during the assessment, processing and issuance of the final STS label.

An STS Securitization Checker can be integrated with financial databases to verify information and can be embedded in any client portal or website.

Background

On January 17, 2018 two EU Regulations setting out a new framework for European securitisation entered into force. Regulation (EU) 2017/2402 (the Securitisation Regulation) introduces a new framework for STS securitisations and Regulation (EU) 2017/2401 (the securitisation Prudential Regulation) sets out the framework under which certain institutional investors can benefit from favorable regulatory capital treatment for STS securitisations. Assessing the eligibility of a certain transaction under these regulations and submitting the paperwork to ESMA involves complex and time-consuming processes that constrain both parties submitting information as well as the officiating authority’s resources.

An STS Securitization Checker makes the assessment and submission processes much more transparent as users are guided through an interactive questionnaire. The tool adapts to the user’s inputs and automatically assesses the eligibility criteria and required supporting forms and documentation while checking provided user information against financial data sources to streamline the final eligibility assessment. The tool easily integrates into any website and may be connected to internal databases to simultaneously process checks and identify risks faster. Leveraging BRYTER’s rule-based logic, the tool provides an individual eligibility score for each assessment against custom criteria and auto-generates reports to track and process any identified red flags.   

Benefits

Automated & Consistent

An STS Securitization Checker assesses the STS eligibility of a transaction and determines all required information and supporting documentation. It ensures consistency, in accordance with EU regulations, in the way a securitization is assessed, submitted and processed.

Faster Execution

Law firms can save significant resources when advising on STS eligibility and preparing the required documentation.

Risk profiles

An STS Securitization Checker generates an eligibility score for each individual transaction against pre-determined criteria and helps trouble-shoot any identified risks.

How it works

1

Insert transaction information

The user is guided through an interactive questionnaire which automatically determines the required information and documentation for the assessment.

Assess eligibility

The rule-based logic of the tool auto-assesses STS eligibility under the applicable EU regulations using sophisticated risk scoring and generates a full summary of the assessment to streamline the final decision.

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3

Identify risks

An STS Securitization Checker integrates with internal and official databases to confirm input data as the user provides that information. A dashboard tracks all transaction assessments and eligibility scores to process identified red flags faster.