The European Securities and Markets Authority has launched a consultation on changing how calibration parameters for stress test scenarios are updated under the Money Market Funds framework. ESMA proposes replacing the current practice of amending Section 5 of the Guidelines each year with an annual web-based publication of the calibration parameters, while the Guidelines would continue to set out the stress testing framework and methodology. Under the proposal, ESMA’s website would become the single access point for the latest annual calibrations. The change is intended to let market participants apply updated parameters immediately after approval and to reduce compliance and supervisory burdens as part of ESMA’s Simplification and Burden Reduction initiative. Feedback is due by 6 August 2026. ESMA expects to publish a final report in the second half of 2026, and the new update procedure would apply from the next parameter update, expected at the end of 2026.
European Securities and Markets Authority 2026-05-05
European Securities and Markets Authority launches consultation on web-based annual updates for money market fund stress test parameters
The European Securities and Markets Authority has launched a consultation on revising how calibration parameters for stress test scenarios are updated under the Money Market Funds framework. ESMA proposes to stop annually amending Section 5 of the Guidelines and instead publish the updated calibration parameters each year on its website, which would remain the single access point while the Guidelines continue to set out the stress testing framework and methodology. The change is intended to enable immediate application of updated parameters and reduce compliance and supervisory burdens.