Service Cash Equivalents 88% Investment Services 88%
Specialism Prudential Standards 92% Governance 88%
2026-03-27 09:13:55 · adavies@vixio.com
ID
3006833
GUID
d86fbf9f2d99d706438cfffa5977982f

Classification

Service
Cash Equivalents (88%)

Money market funds are explicitly identified as cash-equivalent products in the taxonomy, and this update directly regulates MMF stress testing under MMFR, 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
Prudential Standards (92%)

The update establishes mandatory stress testing requirements and calibration parameters for money market fund managers under MMFR Article 28, which are core prudential standards for financial soundness and risk management.

Governance (88%)

Mandatory inheritance: Prudential Standards requires Governance as the secondary tag, reflecting the governance and risk management framework underlying these stress testing obligations.

Pipeline Progress

🔄 Pipeline Journey

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Metadata 09:13:01
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S3 Content 09:13:01
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LLM Gen 09:13:51
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Stored 09:13:55
TITLE: European Securities and Markets Authority Publishes Stress Testing Guidelines for Money Market Funds BODY: On 26 March 2026, the European Securities and Markets Authority (ESMA) published updated guidelines on stress testing scenarios for money market funds (MMFs) under the Money Market Funds Regulation (MMFR). The guidelines establish common baseline parameters that MMF managers and competent authorities must apply when conducting stress tests under Article 28 of the MMFR. The guidelines specify stress testing requirements across six key risk factors: asset liquidity level changes, credit risk level changes (including credit events and rating events), interest rate and foreign exchange rate changes, redemption levels, index-linked spread changes, and macroeconomic shocks affecting the broader economy. The guidelines distinguish between historical and hypothetical scenarios and require managers to test impacts on both portfolio net asset value and fund liquidity. Managers must also assess combined scenarios incorporating multiple risk factors and redemption pressures simultaneously. ESMA updated calibration parameters in 2025 in collaboration with the European Systemic Risk Board (ESRB) and the European Central Bank (ECB). The guidelines include specific discount coefficients for liquidity stress, credit spread shocks by asset type and rating, foreign exchange rate movements, and redemption shock parameters. Managers must report stress testing results using templates specified in the MMFR Article 37 reporting requirements. Competent authorities must report to ESMA within two months of publication whether they comply with the guidelines, partially comply with intention to comply, or do not comply and do not intend to comply. The guidelines apply two months after publication in all official EU languages on ESMA's website.
  • Scraped:2026-03-27 09:13:55
  • Created:2026-03-27 09:13:55
  • By:adavies@vixio.com (41)