Question
Can debt securities issued by corporate treasuries organised in separate legal entities be classified as “corporate debt securities” for the purpose of Delegated Regulation (EU) 2015/61?
Background on the question
Many large non-financial corporations have their treasury organised in a separate legal entity. These corporate treasuries issue financial instruments (e.g. debt securities) and provide loans to the corporate. The issued financial instruments are guaranteed by the non-financial corporation on an instrument by instrument basis. The counterparty classification for liquidity reporting of the individual legal entity is “financial customer”, also refer to EBA Q&A 2016_2793, because the activities of the individual entity are listed in Annex I to Directive 2013/36/EU. The question is whether issued debt securities from these type of corporate treasuries can be classified as “corporate debt securities” mentioned in the Delegated Regulation (EU) 2015/61?
Answer
This question has been rejected because the question is not sufficiently clear, or has not sufficiently identified a provision of a legal framework covered by this tool that creates uncertainty and for which an explanation is merited in terms or practical implementation or application.