On 21 March 2018, ESMA published the first set of guidelines establishing common reference parameters for the stress test scenarios to be included in a money market fund’s (MMF) stress tests conducted in accordance with Article 28 of the Money Market Funds Regulation (MMF Regulation).

In accordance with Article 28(7) of the MMF Regulation, the guidelines are to be updated at least every year taking into account market developments. On 28 September 2018, ESMA issued a consultation paper setting out draft updated guidelines. In particular, section 4.8 of the guidelines have been updated so that managers of MMFs have the information needed to fill in the corresponding fields in the reporting template mentioned in Article 37 of the MMF Regulation. This information includes specifications on the type of the stress tests mentioned in section 4.8 and their calibration.

The deadline for responses to the consultation paper is 1 December 2018. The updated guidelines are expected to be finalised in Q1 2019.