Standby credits, on demand guarantees/bonds

AFME publishes joint association declaration on the significance of credit ratings within the EU corporate bond transparency framework

The Association for Financial Markets in Europe (AFME), in collaboration with several other financial market trade associations, has issued a joint statement emphasising the integral role that credit ratings have in the EU's post-trade transparency framework for corporate bonds. As ESMA concludes its review of the regime, the associations strongly encourage policymakers to incorporate credit ratings to distinguish between investment grade and high-yield corporate bonds. As the European Securities Markets Authority finalises its analysis of the regime, the associations strongly encourage policymakers to incorporate credit ratings to differentiate between investment grade and high-yield corporate bonds; resulting in the alignment with other global sophisticated bond markets; improve transparency for more liquid bonds; and safeguard market liquidity where necessary.

FCA sets out process for establishing bond CT

The Financial Conduct Authority (FCA)has set out the process to appoint a consolidated tape provider (CTP) for bonds in the UK market, ensuring that data on bond transactions is accessible in a cost-effective way.On 3 December 2024, the FCA published a Concession Notice setting out the next steps for running the tender process.The FCA plans to publish draft tender documents on its procurement portal by 31 January 2025, allowing potential bidders to submit questions before the issuance of final tender documents.

MHCLG publishes non-statutory guidance on HSRAs

The Ministry of Housing, Communities and Local Government (MHCLG) has published non-statutory guidance, providing a comprehensive overview of the application and implementation of High Street Rental Auctions (HSRAs), a new power introduced by the Levelling Up and Regeneration Act 2023. The guidance outlines the 22-24 week HSRA process, from initiation to completion, detailing the necessary steps, including the designation of eligible areas and meeting vacancy and local benefit conditions. It is intended for use by local authorities concerned about vacant commercial premises, commercial landlords and their lenders, businesses and community groups seeking commercial space, and commercial agents who may manage a HSRA on behalf of a local authority.

AFME releases report on UK capital markets

The Association for Financial Markets in Europe (AFME) has published its latest report on UK capital markets, reflecting a mixed performance as the UK continues to be a leading global financial hub however, the gap with other markets is closing and the report indicates that UK corporations have sourced a quarter of their funding from public markets over the past three years, with capital markets issuance for non-financial corporations increasing in 2024. Despite long-term trends illustrating notable declines in convertibles, initial public offerings, and follow-on issuances; the UK remains strong in areas like unicorn companies and household savings in capital market instruments with the exception of challenges sourrounding medium-sized enterprise equity risk financing and green bond origination.