The road to regulatory reform is long and winding.
The European Commission's proposals make clear that securitization will continue to be singled out among capital markets with harsher rules. Indeed, the rules will become more complicated, not less.
Furthermore, even to get to the point where these proposals are implemented will take years. The European Parliament and Council will both get a chance to propose amendments. After that, the text is likely heading for a closed doors, quid pro quo style negotiation in trilogue.
Even when there is a final text, the supervisory authorities — now headed by the European Banking Authority, not the European Securities and Markets Authority — will need to produce level two and three texts. Then there will be more reviews of how these new regulations are working.
But looking beyond the process, these are mostly good proposals for the securitization market. GlobalCapital sources have welcomed the Commission's clear intent, as well as much of the package.
From the market's perspective, the proposals could get even better with certain tweaks (as Tom Hall discusses here). To achieve that, advocates for the market will have to keep making their case with fresh intensity. You could say it will be a test of resilience.