It is therefore important for the originator, sponsor or original lender to retain a material net economic exposure to the underlying risks in question. Inside information in accordance with Regulation (EU) 596/2014 (MAR).Information relating to certain significant events. Much of the detail is set out in the ESMA consultation paper setting out draft technical standards on disclosure requirements, operational standards, and access conditions under the Securitization Regulation which was published on 19 December 2017. 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To be eligible to be registered under this Article, a securitisation repository shall be a legal person established in the Union, apply procedures to verify the completeness and consistency of the information made available to it under Article 7(1) of this Regulation, and meet the requirements provided for in Articles 78, 79 and 80(1) to (3), (5) and (6) of Regulation (EU) No 648/2012. that the liquidity facility shall be drawn down and the maturing securities shall be repaid in the event that the sponsor does not renew the funding commitment of the liquidity facility before its expiry. Any referenced interest payments under the securitisation assets and liabilities shall be based on generally used market interest rates, or generally used sectoral rates reflective of the cost of funds, and shall not reference complex formulae or derivatives. There is no need for multiple applications of the retention requirement. Only the following shall qualify as a retention of a material net economic interest of not less than 5 % within the meaning of paragraph 1: the retention of not less than 5 % of the nominal value of each of the tranches sold or transferred to investors; in the case of revolving securitisations or securitisations of revolving exposures, the retention of the originator’s interest of not less than 5 % of the nominal value of each of the securitised exposures; the retention of randomly selected exposures, equivalent to not less than 5 % of the nominal value of the securitised exposures, where such non-securitised exposures would otherwise have been securitised in the securitisation, provided that the number of potentially securitised exposures is not less than 100 at origination; the retention of the first loss tranche and, where such retention does not amount to 5 % of the nominal value of the securitised exposures, if necessary, other tranches having the same or a more severe risk profile than those transferred or sold to investors and not maturing any earlier than those transferred or sold to investors, so that the retention equals in total not less than 5 % of the nominal value of the securitised exposures; or. Although CLOs are not capable of attaining STS status5 due to the active portfolio management nature of a CLO on a discretionary basis, there are a number of provisions relating to, inter alia, risk retention and due diligence that have been moved across to the Securitization Regulation from the CRR by virtue of the CRR Amendment Regulation6. In an ABCP transaction, securitisation could be achieved, inter alia, through agreement on a variable purchase-price discount on the pool of underlying exposures, or the issuance of senior and junior notes by an SSPE in a co-funding structure where the senior notes are then transferred to the purchasing entities of one or more ABCP programmes. For reasons of legal certainty, credit institutions or investment firms, insurance undertakings, reinsurance undertakings and alternative investment fund managers should, for securitisation positions outstanding as of the date of application of this Regulation, continue to be subject to Article 405 of Regulation (EU) No 575/2013 and to Chapters I, II and III and Article 22 of Delegated Regulation (EU) No 625/2014, Articles 254 and 255 of Delegated Regulation (EU) 2015/35 and Article 51 of Commission Delegated Regulation (EU) No 231/2013 (21) respectively. The draft regulatory technical standards on risk retention were produced by the EBA under Article 6(7) (Risk Retention) of the Securitization Regulation on 15 December 2017 (Risk Retention RTS) and are discussed in our Article (STS: the EBA proposed RTS on risk retention). • The requirements for using the designation ‘simple, transparent and standardised’ (STS) securitisation are new and will be further specified by EBA guidelines and supervisory practice over time.