Funds warm to Esma liquidity rules after Covid crisis

Funds are embracing stress-testing, and swing pricing, after “a real liquidity crisis” in March

Coronavirus

The heavy outflows from retail funds in March have softened the attitudes of some asset managers who were resistant to upcoming requirements on liquidity stress-testing, published by the European Securities and Markets Authority last year.

“Esma came out with those guidelines, which were pretty stringent, which we thought maybe were going too far. Looking back at it, some of them are very useful,” said Michael Derwael, a Luxembourg-based risk manager at MFS Investment Management. 

Esma’s

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