On 10 April 2018, the European Commission adopted a Delegated Regulation on simple, transparent and standardised (STS) securitisations and asset-backed commercial papers (ABCPs), requirements for assets received as part of reverse repurchase agreements and credit quality assessment methodologies under the Regulation on money market funds (MMFs). The Delegated Regulation concerns MMF investment requirements and

  • ensures alignment of those requirements with corresponding provisions of the STS Securitisation Regulation (which had not been finalised before the MMF Regulation was adopted)
  • specifies the quantitative and qualitative liquidity requirements for collateral received as part of reverse repurchase agreements
  • specifies the credit quality assessment methodology for the assets in which the MMF will invest. 

The next step is for the Council of the EU and the European Parliament to consider the Delegated Regulation. If neither of them objects, it will enter into force twenty days after it is published in the Official Journal of the EU. It will apply from 21 July 2018, with the exception of Article 1 which will apply from 1 January 2019. The MMF Regulation enters into force on 21 July 2018.