EU Commission Issues New Guidance for Money Market Funds (finance.ec.europa.eu)

• New liquidity management requirements for MMFs
• Enhanced stress testing and reporting obligations
• Commission aims to prevent contagion and stabilize EU financial markets

"The European Commission has published new regulatory guidance for money market funds (MMFs) to bolster their resilience against market shocks and reduce systemic risk. The guidance includes stricter liquidity management, enhanced stress testing, and improved transparency. This aims to prevent a repeat of the 2020 MMF stress episode and strengthen the EU's financial stability framework."