![Money Market Funds: Measures to improve stability and liquidity [EU Legislation in Progress]](https://i0.wp.com/epthinktank.eu/wp-content/uploads/2016/02/eprs-briefing-577956-money-market-funds.jpg?fit=870%2C579&ssl=1)
Written by Marcin Szczepański (3rd edition),
Money Market Funds (MMFs) are a type of collective fund that invest in short-term debt and provide financing for financial institutions, corporations and governments. During the financial crisis their liquidity and stability were challenged, which prompted the Commission to propose a regulation on MMFs, in 2013. Its proposal aimed to improve their ability to weather stressed market conditions, mainly through establishing a capital buffer, introducing conditions on portfolio structure, addressing over-reliance on external credit rating agencies and improving their internal risk management, transparency and reporting.
The final text lays down rules and common standards to ensure that MMFs have a stable structure and improved liquidity, that they invest in diversified assets of a sufficiently high credit quality, and are able to deal with unexpected redemption requests. It was approved by the EP in April 2017 and by the Council in May.
Versions
- July 2017: Money Market Funds: Measures to improve stability and liquidity (3rd edition)
- October 2016: Money Market Funds: Measures to improve stability and liquidity (2nd edition)
- February 2016: Money Market Funds: Measures to improve stability and liquidity (1st edition)
| Proposal for a regulation of the European Parliament and of the Council establishing a Union certification system for aviation security screening equipment | ||
| Committee responsible: | Economic and Monetary Affairs (ECON) | COM(2013) 615 4.9.2013 procedure ref.: 2013/0306(COD) Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’) |
| Rapporteur: | Neena Gill (S&D, United Kingdom) | |
| Shadow rapporteurs:
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Brian Hayes (EPP, Ireland)
Syed Kamall (ECR, United Kingdom) Petr Ježek (ALDE, Czech Republic) Fabio De Masi (GUE/NGL, Italy) Philippe Lamberts (Greens/EFA, Belgium) |
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| Procedure completed | Regulation (EU) 2017/1131 OJ L 169, 30.6.2017, pp 8-45 |
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