ESMA publishes an opinion on the application of guidelines on Money Market Funds

On the 22nd August 2014, the European Securities and Markets Authority (ESMA) published its opinion on how national competent authorities should apply the modifications to the CESR guidelines on money market funds set out in the report on Mechanistic Reference to Credit Ratings in the ESA’s Guidelines and Recommendations issued by the Joint Committee of the three ESAs, when monitoring the application of the CESR guidelines by the relevant financial market participants.

The Joint Committee report was published on 6 February 2014, setting out the manner in which the CESR guidelines were to be amended, in particular with respect to the assessment of credit quality of money market instruments by managers of Short-Term Money Market Funds (ST MMFs) and Money Market Funds (MMFs).

The ESMA’s said Opinion is available on its official website.