RBA Market Advice – Changes to Eligible Securities Operational Notes and Asset-backed Securities Maintenance
The Reserve Bank has updated the operational notes for domestic market operations pertaining to eligible securities, and amended the criteria for asset-backed securities (ABS) with revolving asset pools.
Eligible Securities Criteria
The eligible securities policy has been updated to be easier for market participants to navigate. There are no substantive changes to the policy, other than to ABS with revolving pools (see below). All securities that are currently eligible for repo will remain eligible.
The Reserve Bank has implemented a new form that must be completed to apply for repo eligibility. The spreadsheet form will no longer be accepted.
ABS issuers also no longer need to complete the Deal Data Registration and Amendment Form for new ABS. After the eligible securities application form is submitted, the Securitisation Support Centre (SSC) will contact the nominated Information Provider with deal setup instructions.
The Reserve Bank has amended the requirements for issuers to maintain eligibility for ABS with revolving asset pools. These requirements are outlined in the operational notes. Issuers must submit an ABS maintenance form to the Reserve Bank at least 10 business days before one or more of the following events:
- the assets in the pool change by more than 10 per cent in any monthly reporting period;
- the transaction documents are amended; or
- a security is reissued under a new ISIN that must be made repo-eligible on the issue date.
Issuers must also provide a ratings affirmation and insurability attestation (where applicable) to the Reserve Bank annually.
Where the assets in the pool change by less than 10 per cent in any monthly reporting period, no application is required. The Reserve Bank reserves the right to request a ratings affirmation at any time.
These requirements apply to all self-securitisations and marketed ABS with revolving asset pools.
- Eligible securities criteria
- Eligible securities application form
- ABS maintenance
- ABS maintenance application form
Please address any questions to the eligible securities team at email@example.com.
Risk & Compliance Department
Reserve Bank of Australia
8 November 2021