BCBS and IOSCO issue criteria for identifying simple, transparent and comparable short-term securitizations

The Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) issued the Criteria for identifying simple, transparent and comparable short-term securitizations (the short-term STC criteria), which aim to assist the financial industry in such developments.

The criteria take account of the characteristics of asset-backed commercial paper (ABCP) conduits, such as (i) the short maturity of the commercial paper issued, (ii) the different forms of programme structures and (iii) the existence of multiple forms of liquidity and credit support facilities.

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