The European Securities and Markets Authority (ESMA) published, on Wednesday 30 November, the Final Report on the 2022 update of guidelines on money market funds stress tests under the Money Market Funds Regulation (MMFR).
This update comes against the backdrop of the resurgence of the Covid-19 pandemic, compounded with ‘zero Covid’ policies in some regions, uncertainty about the economic consequences of Russia’s invasion of Ukraine and geopolitical tensions.
The calibration takes into account the systemic risks identified in the warning issued by the European Systemic Risk Board (ESRB) on the vulnerabilities of the EU financial system. In calibrating the new risk parameters, ESMA worked closely with the ESRB and the European Central Bank (ECB).
The new parameters defined in the updated Guidelines will have to be used for the first reporting period following the start of the application of the updated guidelines. These Guidelines will be updated at least annually, taking into account the latest market developments.
To consult the final ESMA report: https://aeur.eu/f/4fr (Original version in French by Anne Damiani)