Service Cash Equivalents 88% Investment Services 88%
Specialism Regulatory Reporting 89% Supervision 87%
2026-03-27 09:13:05 · adavies@vixio.com
ID
3006832
GUID
4babf7e7239c6089b523d47a8dd453eb

Classification

Service
Cash Equivalents (88%)

Money market funds are explicitly defined as cash-equivalent products in the taxonomy, and this update directly regulates MMF stress testing requirements under EU regulation, satisfying the Strong Yes criteria for Cash Equivalents.

Investment Services (88%)

Mandatory inheritance: Cash Equivalents as the primary tag requires Investment Services as the secondary tag, as MMF managers are investment service providers managing liquid asset portfolios.

Specialism
Regulatory Reporting (89%)

The guidance establishes mandatory stress testing requirements and common benchmark parameters that MMF managers must conduct under Article 28 of the MMF Regulation, constituting regulatory reporting obligations for prudential data submission.

Supervision (87%)

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
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Metadata 09:11:40
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S3 Content 09:11:40
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Extracted 09:12:47
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LLM Gen 09:12:57
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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 updated guidance on stress testing scenarios for money market funds (MMFs) under the Money Market Funds Regulation (Regulation (EU) 2017/1131). The guidance establishes common benchmark parameters for stress testing scenarios that MMF managers must conduct in accordance with Article 28 of the MMF Regulation. It applies to competent authorities, MMFs, and MMF managers across the European Union. The guidance aims to ensure consistent and uniform application of MMF stress testing requirements and addresses six key risk factors: hypothetical changes in asset liquidity levels; credit risk variations including credit events and rating changes; interest rate and exchange rate fluctuations; redemption levels; spread widening or narrowing on index-linked interest rates; and macroeconomic shocks affecting the broader economy. The guidance specifies that stress testing should measure impacts on both portfolio net asset value and MMF liquidity groups, as well as managers' capacity to meet investor redemptions. It distinguishes between historical scenarios (reproducing parameters from past crises) and hypothetical scenarios (prefiguring specific events). Managers may also conduct reverse stress testing to identify vulnerabilities and aggregate stress testing across multiple funds. The calibration section (Section 5) was updated in 2025 to reflect recent market developments and provide parameters for common benchmark scenarios. ESMA collaborated with the European Central Bank (ECB) and the European Systemic Risk Board (ESRB) on calibration. The guidance applies two months following publication on ESMA's website in all official European Union languages, with certain provisions applying from dates specified in Articles 44 and 47 of the MMF Regulation. Competent authorities must notify ESMA of their compliance status within two months of publication. REFERENCE: https://www.esma.europa.eu/sites/default/files/library/esma50-481369926-30848_orientamenti_sugli_scenari_delle_prove_di_stress_ai_sensi_del_regolamento_fcm.pdf
  • Scraped:2026-03-27 09:13:05
  • Created:2026-03-27 09:13:05
  • By:adavies@vixio.com (41)