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Esma issues call for evidence on credit ratings and data

Source: Esma

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published a call for evidence on the availability and use of credit rating information and data.

The purpose of this call for evidence is to gather information on the specific uses of credit ratings as well as how the users of credit ratings are currently accessing this information.

Feedback to this call for evidence will enable ESMA to map the principal activities (regulatory and otherwise) undertaken by various types of users of credit ratings. ESMA aims, for each activity such as risk management, market research and regulatory reporting, to identify users’ specific rating data needs (e.g. format, frequency, scope, downloadability etc) and how these correspond with the information that is currently provided on the European Rating Platform (ERP) and on credit rating agencies’ (CRAs) public websites.

The call for evidence also aims to understand why users choose to subscribe to third party data fee service providers rather than rely on the information published free of charge on the ERP and CRAs’ websites

ESMA, based on the feedback, will publish a report describing the current disclosure practices of CRAs including via third-party data service providers, as well as the consumption patterns of rating users. This report will consider options to improve access to and use of credit ratings including whether there is scope to improve the usability of the information provided on the ERP and/or CRAs’ public websites.

The call for evidence is open until 3 August 2020 and input is welcomed from all interested stakeholders, including users of credit ratings such as public authorities and financial market participants, credit rating agencies as well as distributors of credit rating data.

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