By / July 25, 2017

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

Written by Marcin Szczepański (3rd edition), Money Market Funds (MMFs) are a type of collective fund that invest in short-term…

© Anton Gvozdikov / Fotolia

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.

 

Versions

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:

 

 

 

 

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

 

 


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