On 13 January 2026, the European Securities and Markets Authority (ESMA) issued a Final Report containing updated guidelines on stress test scenarios under the Money Market Funds Regulation (MMF Regulation).

The MMF Regulation provides that ESMA shall develop guidelines with a view to establishing common reference parameters of the stress test scenarios to be included in the stress tests that MMFs or managers of MMFs are required to conduct. The guidelines are to be updated at least every year taking into account the latest market developments. ESMA published the latest update of the guidelines on 7 January 2025 and their translation on 24 February 2025.

The annex to the Final Report contains the full text of the updated guidelines and the calibration of the scenarios for 2025 (updates in red).

Next steps

The updated guidelines will now be translated into the official EU languages and published on ESMA’s website.

The publication of the translations will trigger a two-month period during which Member State competent authorities (NCAs) must notify ESMA whether they comply or intend to comply with the guidelines.

The updated guidelines in the Final Report, including the new 2025 parameters, will apply two months after the publication of the translations. After the start of the application of the updated guidelines, managers will have to report the results of the new parameters to NCAs with their quarterly reports, for the purpose of the reporting referred to in Article 37 of the MMF Regulation and set out in Commission Implementing Regulation (EU) 2018/7085. Until then, managers should use the parameters set in the 2024 guidelines and report the results accordingly.