Technology Impact of the SEC's Rule Changes for Asset-Backed Securities

Abstract

ABS surveillance requirements have been ever-increasing under both market and regulatory pressure as the ABS market has flourished. Demands for improved databases, more analytics, and better reporting are heightened as securitization has moved from an obscure derivative to a mainstream portfolio holding. Satisfying the increased disclosure, reporting, and dissemination challenges is both an operational and technology issue for many institutions. This article outlines some of the most recent and far-reaching changes in ABS surveillance, data tracking, and investor reporting. It pays special attention to the new SEC rulings and those requirements that have the greatest impact on securitization technology. In addition, this review discusses current industry “best practices” and introduces ways to mitigate the technology impact on an issuer's bottom line.