Brussels, 07/01/2016 (Agence Europe) - On Thursday 7 January, European Commission denied information which appeared in the Financial Times suggesting that the European plans to revitalise the securitisation market could cause market fragmentation.
In December of last year, the Council adopted two proposed regulations aiming to breathe new life into this market, by promoting simple, transparent and standardised (STS) securitisation (STS) (see EUROPE 11445).
The Financial Times reported that STS securitisations must originate in the EU, which raised the question of whether European investors would be discouraged from buying deals originated elsewhere, in particular the United States. “There are no geographical restrictions on the underlying assets that can be securitised, nor on who can invest in EU STS products”, Commission spokesperson Vanessa Mock explained. Another European source pointed out that the Europeans have already responded to industry concerns. (Original version in French by Elodie Lamer)