ESMA consults on a new simplified approach to updating MMF stress test parameters
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today launched a consultation on a new approach to updating the parameters for stress test scenarios under the Money Market Funds framework.
ESMA proposes replacing the current annual amendments to Section 5 of the Guidelines with an annual web-based publication of the calibration parameters.
The Guidelines would continue to define the stress testing framework and methodology, while the website would serve as a single point of access for the latest annual calibrations.
The proposed approach aims to simplify the update process and improve accessibility, allowing market participants to apply updated parameters immediately after approval. It is also intended to reduce compliance and supervisory burdens, in line with ESMA’s Simplification and Burden Reduction (SBR) initiative.
Next steps
Feedback should be submitted by 6 August 2026. ESMA will then consider the feedback received and expects to publish the corresponding final report in H2 2026. The new procedure for the update of the parameters will apply with the next update, which is expected at the end of 2026.
Further information:
Ana Dilaverakis
Communications Officer
press@esma.europa.eu