in force 2024-12-24 MODIFIED+873 −6§
Amended by Regulation (EU) 2024/2987 32024R2987
applies from: unchanged
Paragraph 4 now refers to derivative transactions generally rather than only OTC derivative transactions, and limits the 5% counterparty exposure cap to those derivative transactions that are not centrally cleared through a CCP authorised under Article 14 or recognised under Article 25 of Regulation (EU) No 648/2012.
Paragraph 5 now applies its 15% cash limit only to reverse repurchase agreements that are not centrally cleared through such a CCP, and a new second subparagraph sets a separate 15% cap on cash provided per agreement when the reverse repurchase agreement is centrally cleared through such a CCP.
Point (c) of paragraph 6 now excludes from the combination limit any financial derivative instruments that are centrally cleared through a CCP authorised under Article 14 or recognised under Article 25 of Regulation (EU) No 648/2012, whereas it previously covered OTC financial derivative instruments without that carve-out.
Cited: Art. 17, v2 · Art. 17, v1
text before / after
02017R1131-20240109 → 02017R1131-20241224
Article 17
Diversification
1. An MMF shall invest no more than:
(a) 5 % of its assets in money market instruments, securitisations and ABCPs issued by the same body;
(b) 10 % of its assets in deposits made with the same credit institution, unless the structure of the banking sector in the Member State in which the MMF is domiciled is such that there are insufficient viable credit institutions to meet that diversification requirement and it is not economically feasible for the MMF to make deposits in another Member State, in which case up to 15 % of its assets may be deposited with the same credit institution.
2. By way of derogation from point (a) of paragraph 1, a VNAV MMF may invest up to 10 % of its assets in money market instruments, securitisations and ABCPs issued by the same body provided that the total value of such money market instruments, securitisations and ABCPs held by the VNAV MMF in each issuing body in which it invests more than 5 % of its assets does not exceed 40 % of the value of its assets.
3. Until the date of application of the delegated act referred to in Article 11(4), the aggregate of all of an MMF's exposures to securitisations and ABCPs shall not exceed 15 % of the assets of the MMF.
As from the date of application of the delegated act referred to in Article 11(4), the aggregate of all of an MMF's exposures to securitisations and ABCPs shall not exceed 20 % of the assets of the MMF, whereby up to 15 % of the assets of the MMF may be invested in securitisations and ABCPs that do not comply with the criteria for the identification of STS securitisations and ABCPs.
4. The aggregate risk exposure to the same counterparty of an MMF stemming from OTC derivative transactions which fulfil the conditions set out in Article 13 and which are not centrally cleared through a CCP authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation, shall not exceed 5 % of the assets of the MMF.
5. The aggregate amount of cash provided to the same counterparty of an MMF in reverse repurchase agreements that are not centrally cleared through a CCP authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation shall not exceed 15 % of the assets of the MMF.
Where a reverse repurchase agreement is centrally cleared through a CCP authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation, the cash provided by an MMF as part of each reverse repurchase agreement shall not exceed 15 % of the assets of the MMF.
6. Notwithstanding the individual limits laid down in paragraphs 1 and 4, an MMF shall not combine, where to do so would result in an investment of more than 15 % of its assets in a single body, any of the following:
(a) investments in money market instruments, securitisations and ABCPs issued by that body;
(b) deposits made with that body;
(c) OTC financial derivative instruments that are not centrally cleared through a CCP authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation, giving counterparty risk exposure to that body.
By way of derogation from the diversification requirement provided for in the first subparagraph, where the structure of the financial market in the Member State in which the MMF is domiciled is such that … 714 unchanged words … and 83/349/EEC (OJ L 182, 29.6.2013, p. 19). or in accordance with recognised international accounting rules, shall be regarded as a single body for the purpose of calculating the limits referred to in paragraphs 1 to 6 of this Article.