STS (Simple, Transparent, Standardised)

EU designation under SR Articles 19–26 for traditional securitisations meeting specified quality criteria, conferring preferential capital treatment. Must be notified to ESMA via portal (traditional) or email STSnotifications@esma.europa.eu (synthetic).

UK Securitisation Regulation 2024

UK post-Brexit domestic framework, effective November 1, 2024 (FCA SECN sourcebook, PRA PS7/24). Broadly mirrors EU SR but with UK-specific modifications; FCA CP26/6 (Feb 2026) proposes further UK divergence.

Risk Retention (5% Rule)

EU SR Article 6 / UK SR requirement: originator, sponsor, or original lender must retain ≥5% material net economic interest. Can be: (a) vertical slice; (b) random sample; (c) first-loss tranche; (d) first-loss in each tranche; (e) seller's interest in revolving structures.