ESMA updates guidelines on stress tests for money market funds

Dec 16, 2020

ESMA updates guidelines on stress tests for money market funds

Wednesday 16 December 2020 11:00

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, is publishing the 2020 update of guidelines on MMF stress tests under the Money Market Funds Regulation (MMFR). The updates take account of MMFs recent experience during March 2020, particularly in relation to redemption scenarios.

The COVID-19 crisis has been challenging for MMFs. Risks have increased for MMFs and the money market instruments in which they invest. Several EU MMFs faced significant liquidity issues during the period of acute stress in March 2020.  

In this context, ESMA assessed whether the...


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