Our CEO, Andras Vajda, was recently interviewed by Börsen-Zeitung for an article discussing disclosure requirements in securitization transactions. Key takeaways include the need for simplification and the role of technology in automation. The article also highlights our successful collaborations with customers on complex securitization programs. 

German Securitization Industry Advocates for EU Disclosure Reform

The German securitization industry is pushing for changes to the EU’s disclosure rules for Asset-Backed Securities (ABS) to help revive the market and free up capital for new bank loans.  Recommendations will be presented to the Federal Ministry of Finance in September by an initiative led by the Association of German Banks and True Sale International GmbH.

Andras Vajda, CEO of iconicchain, has voiced key concerns:

Data Overload: “The current regulations demand excessive granular data. Both issuers and investors would benefit from fewer mandatory fields.”

One-Size-Fits-All Issue: “The one-size-fits-all approach doesn’t fit private transactions, where sophisticated parties negotiate terms directly.”

Data Formatting: “While machine-readable, the current formatting rules are often incomprehensible to humans.”

Vajda also noted that the complexity of data collection has hindered market growth, contrasting the EU’s stringent requirements with Canada’s more streamlined approach. He suggests that simplifying EU processes could lead to broader adoption of securitization transactions by banks.

Read the full article (in German) here.