About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

ESMA Provides FAQ on Common Definitions for European Money Market Funds Under UCITS

Subscribe to our newsletter

As part of the revised Undertakings for Collective Investment in Transferable Securities (UCITS) Directive in Europe, the European Securities and Markets Authority (ESMA) has published a Q&A document that details its guidelines for regulators regarding common definitions for the supervision of money market funds. The paper is aimed at getting European regulators in synch with regards to the treatment of these instruments across the region and to this end, includes information about the expected treatment of ratings (internal and external), details of semantics related to these funds and ESMA’s expectations for firms’ treatment of these instruments.

As stated by ESMA in the document: “The Q&A mechanism is a practical convergence tool used to promote common supervisory approaches and practices under Article 29(2) of the ESMA Regulation.” As such, it is a living document and any further questions or requests for clarification can be added by emailing moneymarketfunds@esma.europa.eu.

The Q&A currently highlights items such as ESMA’s expectations in terms of a management company’s internal rating process; the treatment of instruments with only long term ratings and those that have not been rated; and the definition of what constitutes a “recognised credit rating agency,” among other things. It also provides technical details with regards to the calculation of various aspects of money market funds’ structures, such as the weighted average maturity of the fund or its weighted average life.

ESMA has spent a large part of this year delving into the data related details of various pieces of legislation and, with regards to UCITS, it is an extension of the work carried out by its predecessor last year. The European level regulator has also spent a considerable amount of time, along with the rest of the global regulatory community, consulting on the subject of credit ratings agency as part of the crackdown on the sector.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best practice approaches to data management for regulatory reporting

Effective regulatory reporting requires firms to manage vast amounts of data across multiple systems, regions, and regulatory jurisdictions. With increasing scrutiny from regulators and the rising complexity of financial instruments, the need for a streamlined and strategic approach to data management has never been greater. Financial institutions must ensure accuracy, consistency, and timeliness in their...

BLOG

Experts Probe Data Management Best Practices for Regulatory Reporting: Webinar Preview

Compliance with regulators is getting harder for data professionals as economic volatility and geopolitical strains look set to reshape how global financial markets are overseen. As data professionals brace to take the brunt of the work needed to comply with these rapid and unpredictable changes, A-Team Group will host a webinar that will probe the...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...