LONDON, Sept 5 (IFR) - Sapient Global Markets has launched a
suite of tools, hoping to cash in on its role as constructor of
the European DataWarehouse (ED) by selling software to help
issuers meet ECB loan-level data requirements.
If issuers do not submit their data to the European
DataWarehouse, their bonds will become invalid as repo
collateral at the ECB - it will be the ECB-endorsed repository
of data for eligible ABS bonds (the ECB having conspicuously
failed to endorse other data providers working in the market).
Sapient is hoping to sell its package as a complete solution to
standardise, validate and submit data to the ED, and its
offering has the advantages of tight integration with the ED,
full knowledge of how it will work when it is complete and the
ability to test on prototypes - features not available to its
competitors, since they do not have the construction contract.
"An initiative intended to benefit investors has been hijacked
by captive interest," said a securitisation funding official.
"It's a new European tax on asset-backed real-economy lending -
what else is an ECB-sponsored levy for something most investors
are not looking for?"
The ED has already made a scheme available for submitting RMBS
data, but has not yet released a full technical interface
document which would allow others to develop a similar product
Most of the large structured finance issuers already have their
own loan-level information software (the Bank of England
introduced loan-level data requirements for RMBS in December
2011, meaning all the UK issuers have systems in place) but with
1185 eligible ABS bonds for the ECB, plenty of smaller
institutions will also have to adapt.
Meanwhile, Sapient's release highlighted the short timeframe for
the new requirements - end of 2012 was the original target for
RMBS loan-level data, though this was pushed back in June.
Sapient's ED contract was awarded by eight banks and Link
Financial, a group which collectively calls itself the Market
Group. It is not clear how this group was chosen.
Holland Financial Centre, a lobbying group representing Dutch
banks, threatened to boycott the ED initiative, providing
loan-level data through its own system.