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.