Confluence, a global leader in investment data management automation for regulatory, financial and investor reporting, announced that its fund administrator and asset manager clients servicing or managing European Money Market Funds (MMFs) have successfully met their Article 37 reporting obligations under the European Securities and Markets Authority (ESMA) Money Market Fund Regulation (MMFR) by filing their Q1 and Q2 reports to multiple European national competent authorities. MMF manager clients are also calculating and storing their Liquidity Stress Testing results, as per ESMA mandate.
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Beginning in Q1 2020, European MMFs – investments regarded as being as safe as bank deposits while still giving a higher yield – are required by ESMA to provide more detailed information on performance, liquidity, stress test results and holdings level-data. Under Article 37 of the MMFR, an extension of Undertakings for the Collective Investment in Transferable Securities (UCITS) and Annex IV AIFMD, large MMFs and their administrators have been faced with the steep challenge of meeting these significant and complex disclosure requirements, on a quarterly basis for funds with over 100 million EUR in assets under management and annually for smaller MMFs. Individual national competent authorities (including in Luxembourg and Ireland) further customized the ESMA reporting formats, requiring slightly different reports to be produced.
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Confluence’s Article 37 MMF reporting solution allows clients to integrate and validate their data, then successfully submit filings to multiple European regulators. Clients using Confluence’s reporting and analytics products in tandem benefit from integrated Risk, Liquidity, and Performance data fed seamlessly into their reports. Confluence’s LST solution allows fund managers to monitor liquidity across different market conditions, analyze time-to-liquidate and funds resilience over different periods of time, simulate changes in liquidity profiles upon variations in portfolio allocation and ultimately monitor investors breakdown and concentration.
“BBH successfully filed Q1 and Q2 Article 37 reports on behalf of our clients. Thanks to strong collaboration with Confluence, the submissions were accepted as the filing window opened. This marked a favorable culmination of nearly two years of effort for regulatory filing support to our European money market fund clients,” said Melissa McDonough, Vice President, Brown Brothers Harriman.
“Following the publication of ESMA’s guidelines for the monitoring of liquidity risk, BG Fund Management Luxembourg decided to move from its internal model to the framework of Confluence’s Revolution,” said Marie-Catherine Voltz, Head of Risk and Performance Management at BGFML. “We are pleased to announce the successful implementation of the liquidity risk module, reinforcing a fruitful collaboration between BGFML and Confluence that’s been in place for many years and we hope will continue for many more.”
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