The purpose of the market share calculation is to facilitate issuers and related third parties in their evaluation of a CRA with no more than 10% total market share in the EU.
The CRA Regulation (CRAR), under Article 8d, says that issuers or related third parties are required to consider appointing a CRA with no more than 10% total market share whenever they intend to appoint one or more CRAs to rate an issuance or entity.
Using the Market Share Calculation
The publication aims to guide the user through the requirements of Article 8d. It also provides background and guidance as to how the market share calculation is performed and should be used.
The structure and approach of the document is as follows:
- Section 6 – Allows the user to identify CRAs with no more than 10% total market share;
- Section 7 – Allows the user to identify the types of credit ratings offered by these CRAs;
- Section 8 – Allows the user to assess the proportion each credit rating type makes up of a CRA’s overall issuance; and
- Section 9 – Provides a link to a Standard Form and Supervisory Briefing the user can for documenting the non-appointment of a CRA with no more than 10% total market share.
This market share calculation is valid for use from its date of publication and applicable until the date of publication of the next Market Share Calculation in 2018.
ESMA welcomes feedback on the information presented in this market share calculation in future and invites market participants to send this by email to: CRA-info@esma.europa.eu
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