ESMA calls for evidence on credit rating information availability

The European Securities and Markets Authority (ESMA) has called for evidence on the availability and use of credit rating information and data.

It has done this in order to gather information on specific uses of credit ratings and how the users of credit ratings are accessing the information.

Feedback of this will enable the regulator to map the principal activities (regulatory and others) undertaken by various types of credit ratings.

ESMA will be targeting areas including risk management, market research and regulatory reporting and hopes to identify users’ specific rating data needs, such as format, frequency, scope and downloadability. It also wants to examine how these factors correspond with information currently provided on the European Rating Platform (ERP) and on credit rating agencies’ (CRA) public websites.

Additionally, ESMA hopes the call for evidence will help it to understand why users choose to subscribe to a third party data feed service providers rather than relying on information published free of charge on ERP and CRA websites.

A full report will be published after feedback has been received and reviewed. It will describe the current disclosure practices of CRAs, including third-party data service providers and the consumption patterns of users.

The report will also consider options to improve the usability of information provided on the ERP a d CRA websites.

The call for evidence will be open until August 3 2020 and is open to all stakeholders.

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