Service Cash Equivalents 88% Investment Services 90%
Specialism Regulatory Reporting 92% Supervision 88%
2026-03-27 09:13:00 · adavies@vixio.com
ID
3006842
GUID
f75b070a56b82ad58b6549e6a94f242c

Classification

Service
Cash Equivalents (88%)

Money market funds are explicitly identified as cash-equivalent products in the taxonomy, and this update establishes stress-testing requirements for MMF managers under EU regulation, directly addressing the management and risk oversight of these liquid, low-risk value stores.

Investment Services (90%)

Mandatory inheritance rule: Cash Equivalents as the primary tag requires Investment Services as the secondary tag, as MMF managers provide asset management services and the stress-testing framework is part of broader investment risk governance.

Specialism
Regulatory Reporting (92%)

The update establishes mandatory stress testing procedures and reporting requirements for money market fund managers under EU regulation, which constitutes regulatory reporting obligations.

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
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Metadata 09:11:40
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S3 Content 09:11:40
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Extracted 09:12:46
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LLM Gen 09:12:52
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Stored 09:13:00
TITLE: European Securities and Markets Authority Publishes Stress Testing Guidelines for Money Market Funds BODY: On March 26, 2026, the European Securities and Markets Authority (ESMA) published guidelines establishing common reference parameters for stress testing scenarios applicable to money market funds under the Money Market Funds Regulation (Regulation (EU) 2017/1131). The guidelines specify stress testing procedures that money market fund managers must conduct to identify potential events or economic changes that could adversely affect funds. ESMA established common reference parameters across six key risk factors: hypothetical changes in asset liquidity levels, credit risk levels (including credit events and rating changes), interest rates and exchange rates, redemption levels, spreads between indices to which portfolio securities are linked, and macroeconomic shocks affecting the broader economy. The guidelines distinguish between stress tests conducted by fund managers for internal risk management and common reference stress tests whose results must be reported to competent authorities. For common reference scenarios, managers must apply specific calibrated parameters including liquidity discount factors, credit spread shocks, interest rate shocks, and exchange rate movements. The guidelines also require managers to test scenarios combining multiple risk factors with investor redemption requests, including reverse liquidity stress tests, weekly liquidity stress tests, and concentration stress tests based on the two largest investors. Competent authorities must report to ESMA within two months of publication whether they comply with the guidelines, do not comply but intend to comply, or do not comply and do not intend to comply. The guidelines enter into force two months after publication on ESMA's website in all official European Union languages.
  • Scraped:2026-03-27 09:13:00
  • Created:2026-03-27 09:13:00
  • By:adavies@vixio.com (41)