Cash, Daniel (2017). Artificially increasing competition in the credit rating industry:the ESMA meets an immovable object. European Company Law, 14 (5), pp. 190-192.
Abstract
Recently, the European Securities and Markets Authority has aimed to reinvigorate its efforts to enforce the increase in competition within the credit rating industry. The Supervisory Provisions aim to explain, in precise detail, the rules and regulations for ‘Sectoral Competent Authorities’ with regards to enforcing the usage of rating agencies that have less than 10% of the European market share, particularly when an issuer issues structured-finance products that require two or more ratings. However, in this article we will look at the chances of this artificial push to increase competition actually working and see, through analysing the perspectives of market players, that the will of the regulator with regards to the credit rating industry is, unfortunately, irrelevant – only investors can affect the dominance of the ‘Big Three’ rating agencies.
Divisions: | College of Business and Social Sciences > Aston Business School College of Business and Social Sciences > Aston Law School |
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Additional Information: | Reprinted from European Company Law, vol 14, no. 5, 2017, pp. 190-192, with permission of Kluwer Law International. |
Publication ISSN: | 1572-4999 |
Last Modified: | 05 Aug 2024 07:35 |
Date Deposited: | 31 Aug 2017 09:35 | PURE Output Type: | Article |
Published Date: | 2017-09-01 |
Accepted Date: | 2017-07-04 |
Authors: |
Cash, Daniel
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