Service Cash Equivalents 92% Investment Services 90%
Specialism Regulatory Reporting 92% Supervision 88%
2026-03-27 09:13:05 · adavies@vixio.com
ID
3006828
GUID
ebd86890c1a7fe33b0f92fdda1cdb260

Classification

Service
Cash Equivalents (92%)

Money market funds are explicitly identified as cash-equivalent products in the taxonomy, and this update directly regulates their stress testing and risk management under the Money Market Funds Regulation.

Investment Services (90%)

Mandatory inheritance: Cash Equivalents as the primary tag requires Investment Services as the secondary tag, as money market funds are investment vehicles managing liquid assets for clients.

Specialism
Regulatory Reporting (92%)

The update establishes mandatory stress testing requirements and reporting obligations for money market fund managers under EU regulation, which constitutes regulatory reporting of standardized data in prescribed formats.

Supervision (88%)

Mandatory inheritance: Regulatory Reporting is a child of Supervision, so Supervision must be raised as the secondary tag.

Pipeline Progress

🔄 Pipeline Journey

Queued 09:11:39
+1s
Metadata 09:11:40
+24s
S3 Content 09:12:04
+46s
Extracted 09:12:50
+7s
LLM Gen 09:12:57
+8s
Stored 09:13:05
TITLE: European Securities and Markets Authority Publishes Stress Testing Guidance for Money Market Funds BODY: On March 26, 2026, the European Securities and Markets Authority (ESMA) published comprehensive guidance on stress testing scenarios for money market funds under the Money Market Funds Regulation (Regulation (EU) 2017/1131). The guidance establishes common benchmark parameters for stress testing scenarios that money market fund managers must conduct in accordance with Article 28 of the Money Market Funds Regulation. It addresses six key risk factors: hypothetical variations in asset liquidity, credit risk changes including credit events and rating changes, interest rate and exchange rate fluctuations, redemption levels, widening or narrowing of spreads between indices linked to portfolio interest rates, and macroeconomic shocks affecting the broader economy. The guidance distinguishes between historical scenarios—which reproduce parameters from past crises and extrapolate their impact on current fund portfolios—and hypothetical scenarios designed to anticipate specific future events. It requires managers to test stress impacts on both portfolio value and fund liquidity layers, as well as managers' capacity to meet investor redemption requests. For constant net asset value (CNAV) and low-volatility net asset value (LVNAV) funds, additional testing must estimate differences between constant and variable net asset value per share under various scenarios. The guidance includes detailed calibration parameters updated for 2024 through collaboration between ESMA, the European Central Bank (ECB), and the European Systemic Risk Board (ESRB). These parameters cover liquidity discounts, credit spread shocks, interest rate movements, exchange rate changes, and redemption scenarios. Managers must report stress testing results using the reporting template specified in Article 37 of the Money Market Funds Regulation. Competent authorities must notify ESMA within two months of publication whether they comply with the guidance, and if not, provide reasons for non-compliance. The guidance applies two months after publication in all official European Union languages, with certain provisions applying from dates specified in Articles 44 and 47 of the Money Market Funds Regulation.
  • Scraped:2026-03-27 09:13:05
  • Created:2026-03-27 09:13:05
  • By:adavies@vixio.com (41)