The regulation on money market funds (MMFs) establishes EU-wide rules to make these funds more resilient and better able to withstand market shocks.
It primarily targets risks that may arise when - under stressed market conditions - large groups of investors start withdrawing from money market funds (i.e. a 'run on funds' begins) and a risk of contagion across the EU could ensue.
The rules aim to ensure better protection of MMF investors and safeguard the integrity of the internal market by preventing these risks.
Proposal for a regulation on money market funds - the final compromise text