A rigorous approval process ensures only products that meet stringent criteria are admitted to ABE’s ecosystem.
To protect you and give you confidence through more transparency in the market, we are setting the standard for the industry.
Before any product is admitted to quotation on ABE’s trading platform it must first meet ABE’s strict admission criteria. Regardless of whether ABE is originating a new issue, acting as distributer to the issue, or simply considering an existing product already in the market, the product must first be assessed and approved under ABE’s product quotation policy.
The process involves an initial review of the product to determine if it is likely to meet ABE’s exacting admission requirements. If not, it is rejected before any further work is undertaken.
Once past the first round the ABE credit team undertakes a detailed assessment of the issuer and the product using the product documentation and any other relevant information about the issuer. Moreover, ABE will consult with external subject matter experts as necessary.
Then, an independent internal committee will determine to admit or reject the product. In making that decision, the following broad areas are examined:
- Sources and availability of financial resources that the issuer needs to meet its obligations to investors for both payment of coupons and repayment of principal at maturity.
- Specific features of the product including coupons, maturity, asset backing or other security, covenants and other features designed to mitigate risk.
- Availability of key financial and other information concerning the issuer and product, including ease of access to the information for investors and the frequency and adequacy of updates. A key concern here is to ensure investors have sufficient and regular information to keep up to date with the issuer’s and the product’s performance during the life of the investment.
- Qualitative information concerning the issuer including the market it operates in, legal and regulatory considerations, the company’s reputation, and environmental and social impact.
- Risks and outcomes under various scenarios.
- In the event of a default, the recourse available to investors to recover their money.
If you have questions, please Contact Us.