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On May 5, 2026, the European Securities and Markets Authority (ESMA) launched a consultation on a new approach to updating stress test parameters for money market funds (MMFs) under the Money Market Funds Regulation. ESMA proposes replacing the current annual amendments to Section 5 of the Guidelines with an annual web-based publication of calibration parameters. Under this approach, the Guidelines would continue to define the stress testing framework and methodology, while a dedicated website would serve as a single point of access for the latest annual calibrations. This simplified procedure aims to improve accessibility for market participants, allowing them to apply updated parameters immediately after approval. The proposal aligns with ESMA's Simplification and Burden Reduction (SBR) initiative, intended to reduce compliance and supervisory burdens across the financial services sector. The consultation targets fund managers and other market participants subject to MMF stress testing requirements under the Money Market Funds Regulation. The new approach is significant as it modernises the administrative process for parameter updates, moving from formal guideline amendments to a more flexible digital publication model, which should streamline regulatory compliance while maintaining the robustness of the stress testing framework. Feedback on the consultation should be submitted by August 6, 2026. ESMA will consider responses received and expects to publish the corresponding final report in the second half of 2026. The new procedure for updating parameters is expected to apply with the next update at the end of 2026. Further information and the consultation paper are available on ESMA's website.