you're reading...
Economic and Social Policies, PUBLICATIONS

Money Market Funds: Measures to improve stability and liquidity [EU Legislation in Progress]

Written by Marcin Szczepański (3rd edition),

financial background

© Anton Gvozdikov / Fotolia

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.



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
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:





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)

Procedure completed Regulation (EU) 2017/1131
OJ L 169, 30.6.2017, pp 8-45

Stage: adoption




No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download the EPRS App

EPRS App on Google Play
EPRS App on App Store
What Europe Does For You
EU Legislation in Progress
Topical Digests
EPRS Podcasts

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 3,496 other followers

RSS Link to Members’ Research Service

Disclaimer and Copyright statement

The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.

For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.

Copyright © European Union, 2014-2019. All rights reserved.

%d bloggers like this: