| ESMA publishes implementing rules on Liquidity Management Tools for funds
April 15, 2025--The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, is publishing today the draft Regulatory Technical Standards (RTS) and a final report on the Guidelines (GL) on Liquidity Management Tools (LMTs).
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| These provisions will make EU fund managers better equipped to manage the liquidity of funds, in particular in case of market stress. In addition, the draft RTS will also clarify the functioning of LMTs, such as the use of side pockets for which rules currently vary significantly across the EU. Through their role in mitigating financial stability risks, these rules are an important contribution to the ongoing debate on Non-Bank Financial Intermediation. |