Responding to the Securities and Exchange Commission's (SEC) proposed changes to Reg AB for ABS, BNY Mellon introduced new modeling and reporting capabilities.
Through these additions, issuers can now comply with prospective SEC requirements.
The SEC proposed that materials for ABS public offerings have specified asset-level data regarding each of the assets in the pool.
This asset-level information would be offered to in accordance with the proposed standards and in a tagged data format utilizing extesible Markup Laguage (XML).
Additionally, the SEC would require the filing of a computer program of the contractual cash flow provisions presented as a dowloadable source code in Python, which is a commonly used open source interpretive programing language.
Via these new additions, BNY Mellon will be able to offer issuers waterfall models in the Phython programing langugage, loan level details in XML, a cash-flow projection engine that supports loan-level default and prepayment modeling as well as a desktop application making models and data publicly accessible to worldwide users.
"If these propsosed changes are adopted, issuers of ABS will need to comply with complex reporting requirements that they are not currently equipped to meet," said Douglas Magnolia, manging director at BNY Mellon's QSR Management unit. "We believe we are the first company to develop this capability and we look forward to working with clients in the future should changes become law."
Reg AB is a comprehensive set of rules as well as amendments that address ABS registration,disclosure and reporting requirements.