ESMA writes to European Commission on share cancellation under MMFR

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On 20th July 2018, the European Securities and Markets Authority (ESMA) wrote to the European Commission asking it to provide clarity to market participants and investors on the issue of the compatibility of the reverse distribution mechanism (RDM), or share cancellation, with the Money Market Funds Regulation (MMFR).

ESMA believes that clarity on this issue to investors and market participants is essential to ensure a proper and consistent interpretation and implementation of the MMFR.