ESMA Consults on Money Market Funds Rules

June 2017

The European Securities and Markets Authority (ESMA) has issued the Consultation Paper, Draft technical advice, implementing technical standards and guidelines under the MMF Regulation, proposing technical advice and guidelines on the Money Market Funds Regulation (MMFR), in addition to draft implementing technical standards. Comments on the Consultation Paper are due by 7 August 2017.

The draft proposes rules to implement the European Union regulatory framework to ensure the stability and integrity of money market funds. The proposals include:

  • Requirements for liquidity and credit quality requirements applicable to assets received as part of a reverse repurchase agreement 
  • Criteria for validating credit quality assessment methodologies and quantifying credit and relative default risks of issuers and the investment instrument 
  • Criteria for establishing qualitative indicators on the issuer of the instrument
  • Stress test scenario guidelines 
  • Development of reporting templates.

The Consultation Paper is available on this link.

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