Europejski Urząd Nadzoru Giełd i Papierów Wartościowych (European Securities and Markets Authority - ESMA), Testy warunków skrajnych funduszy rynku pieniężnego w UE - Pierwsze dowody ze sprawozdań funduszy

6 June 2023

ESMA60-1389274163-2560

ESMA TRV Risk Analysis

Stress testing MMFs in the EU – First evidence from fund reporting

Summary

Money market funds (MMFs) are investment funds that invest essentially in money market instruments issued by banks, governments or corporates. They especially serve as short-term liquidity providers to banks, and as cash management vehicles for institutional investors and large corporates, which use them as an alternative to bank deposits. As such, MMFs play a systemically important role as they interconnect money markets, banks and institutional investors. Therefore, any disruption affecting the MMFs may impact various parts of the financial system, potentially with negative implications for financial stability. To help assess and manage the related risks, the EU’s MMF Regulation (MMFR) of 2017 introduced requirements in terms of stress testing. The Regulation requires MMFs to put in place sound stress testing processes as part of their internal risk...