{"id":"circulars/cssf-26-911","title":"Circular CSSF 26/911","type":"circular","date":"2026-05-19","kind":"circular","html":"

Circular CSSF 26/911 is a CSSF circular, published 19 May 2026. Subject: ESMA Guidelines on stress test scenarios under Article 28 of the Money Market Fund Regulation – Update 2025 (ESMA50-481369926-30585).

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Relevant for: AIFMs, Management companies - Chapter 15, SIFs, UCITS.

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Keywords: Credit risk, Market risk, Money Market Fund (MMF), Risk management, Stress test.

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Repeals Circular CSSF 25/877.

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Text

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Circular CSSF 26/911 ESMA Guidelines on stress test scenarios under Article 28 of the Money Market Fund Regulation – Update 2025 (ESMA50-481369926-30585)

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Circular CSSF 26/911 ESMA Guidelines on stress test scenarios under Article 28 of the Money Market Fund Regulation – Update 2025 (ESMA50481369926-30585) To all money market funds under the supervision of the CSSF and Luxembourg managers of money market funds as well as to those that take part in the functioning and control of these undertakings.

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Luxembourg, 19 May 2026

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Ladies and Gentlemen, We refer to Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds (“MMF Regulation”) as well as the 2018 version of the ESMA Guidelines on stress test scenarios under Article 28 of the Money Market Fund Regulation (Ref. ESMA34-49115) as integrated by the CSSF in its administrative practices and introduced by means of Circular CSSF 18/696 with a view of promoting supervisory convergence at European level, thereby becoming applicable in the context of the Luxembourg legal and regulatory framework. Further, we refer to the 2024 version of the Guidelines (Ref. ESMA50-43599798-10651), introduced by means of Circular CSSF 25/877, which included common reference stress test scenarios as well as common reference parameters for those scenarios. On that basis, money market funds (MMFs) and their managers were provided with the necessary information to calculate and fill in the corresponding fields on the results of the stress tests of the MMF in the reporting template as set out in the Annex of the Commission Implementing Regulation (EU) 2018/708 of 17 April 2018 laying down implementing technical standards with regard to the template to be used by managers of money market funds when reporting to competent authorities as stipulated by Article 37 of the MMF Regulation (“Commission Implementing Regulation”). The ESMA Guidelines on the reporting to competent authorities under Article 37 of the MMF Regulation (Ref. ESMA34-49-168), published on 19 July 2019 by ESMA, as introduced by means of Circular CSSF 20/736, provide guidance on the contents of the fields of the reporting template laid down in the Annex of the Commission Implementing Regulation, including for the fields on the stress tests. The purpose of this Circular is to inform you that the CSSF, as competent authority, is integrating the latest version of the ESMA Guidelines on stress test scenarios under the MMF Regulation (Ref. ESMA50-481369926-30585), as published on 13 January 2026 (the “2025 Guidelines”), in its administrative practices. All MMFs under the supervision of the CSSF and Luxembourg managers of MMFs shall duly comply with the 2025 Guidelines. The 2025 Guidelines are appended to this Circular. The English version as well as the French and German translations, published on 26 March 2026, are available on the ESMA website http://www.esma.europa.eu/. In accordance with Article 28 of the MMF Regulation, the Guidelines issued by ESMA are to be updated at least every year in relation to the common reference parameters of the stress test scenarios considering the latest market developments.

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On that basis, the 2025 Guidelines, when compared to the 2024 version, notably provide the annual update of the common reference parameters for the different stress test scenarios. The 2025 Guidelines notably concern the topics summarised in Section 1 below.

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  1. Summarised presentation of the 2025 Guidelines Section 2 of the Final Report (ESMA50-481369926-30585 dated 13 January 2026) on the 2025 Guidelines provides some background on the rationale behind the 2025 update of the Guidelines, which have only been changed in section 5 on the calibration. Calibration The updated calibration, done in collaboration with the ESRB and the ECB, was motivated by a recalibration of the risk parameters.
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The text above is the opening of the document; the PDF carries the whole.

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Document page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.

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