Meeting Money Market Funds Regulation (MMFR) requirements – Solutions for Stress Testing

The global financial crisis exposed vulnerabilities of Money Market Funds (MMFs) during difficult financial market conditions. The COVID-19 market turmoil in March 2020 continued to highlight vulnerabilities in MMFs and it is expected to further increase regulatory scrutiny.

In Europe, as prescribed by the Money Market Funds Regulation, each MMF shall have in place sound stress testing processes that identify changes in economic conditions which could have unfavorable effects on the fund. ESMA guidelines established common reference parameters of the stress tests to be included, but the complexity and the large spectrum of scenarios pose a significant challenge for Money Market Funds.

Listen below to an insightful webinar where MSCI experts will review the regulatory requirements for MMF stress test scenarios and provide an overview of MSCI’s solution helping institutional investors seeking to meet these requirements.

Watch the session on demand.