Regulatory Alerts2018-07-20
Added · Updated
CSSF Circular 18/696 implementing ESMA Guidelines on stress test scenarios for Money Market Funds
The CSSF implements the ESMA Guidelines on stress test scenarios under Article 28 of the MMF Regulation into Luxembourg law for money market funds and their managers. Managers must tailor stress tests to specific fund characteristics, incorporating minimum requirements for liquidity, credit risk, interest rates, exchange rates, redemptions, spreads, and macro systemic shocks, while also building multivariate scenarios. The circular enters into force on 21 July 2018, subject to transitional arrangements for existing UCITS and AIFs under Article 44 of the MMF Regulation.
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