{
  "title": "France: Financial Sector Assessment Program-Technical Note on Supervision of Liquidity Risk in Investment Funds and the Oversight of Trading Activities",
  "publication": "IMF Staff Country Reports, August 29, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2025/08/18/france-financial-sector-assessment-program-technical-note-on-supervision-of-liquidity-risk-569743",
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  "summary": "Financial markets in France have evolved since the previous FSAP, particularly in respect of wholesale markets. France has attracted new types of trading activities and there is movement towards consolidation in the wholesale trading and asset management sectors.",
  "sections": [
    {
      "heading": "Summary findings and market evolution",
      "content": "- Financial markets in France have evolved since the previous FSAP, particularly in respect of wholesale markets.\n- France has attracted new types of trading activities and there is movement towards consolidation in the wholesale trading and asset management sectors.\n- Changes have often increased the complexity of markets within France, and in turn the complexity of supervision.\n- In some areas there has been a trend towards simplification and standardization in offerings, such as through Exchange Traded Funds (ETFs) and neo-brokers.\n- Requirements for liquidity risk management within funds were changing at the time of the mission.\n- Responsibilities of regulators have grown, with new obligations to supervise digital asset markets, sustainable finance, and digital operational resilience."
    },
    {
      "heading": "Supervisory challenges and implications",
      "content": "- Increased market complexity has raised supervisory complexity.\n- Consolidation in wholesale trading and asset management sectors affects oversight dynamics.\n- Standardization via ETFs and neo-brokers alters product mix and operational profiles supervisors must assess.\n- Evolving liquidity risk management requirements for funds require supervisory adaptation."
    },
    {
      "heading": "Regulatory changes and expanding supervisory scope",
      "content": "- Significant regulatory changes occurred prior to and during the mission.\n- New supervisory obligations explicitly include:\n  - Digital asset markets\n  - Sustainable finance\n  - Digital operational resilience\n- The technical note addresses supervision of liquidity risk in investment funds and oversight of trading activities within this evolving regulatory context."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Asset and liability management; Asset management; Financial regulation and supervision; Financial sector policy and analysis; Financial sector stability; Liquidity; Liquidity risk\n- Keywords: Asset management; derivative trading obligation; Financial sector stability; Global; Liquidity; Liquidity risk; management directive; money market fund regulation; trading ACTIVITES; trading activity\n\nInternational Monetary Fund. France: Financial Sector Assessment Program-Technical Note on Supervision of Liquidity Risk in Investment Funds and the Oversight of Trading Activities. August 29, 2025.\n\n---\n\n Content in this bundle\n\n- 1fraea2025006\n  - 1fraea2025006 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1fraea2025006 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: August 29, 2025",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798229022552.002",
    "Financial markets in France have evolved since the previous FSAP, particularly in respect of wholesale markets.",
    "France has attracted new types of trading activities and there is movement towards consolidation in the wholesale trading and asset management sectors.",
    "Changes have often increased the complexity of markets within France, and in turn the complexity of supervision.",
    "In some areas there has been a trend towards simplification and standardization in offerings, such as through Exchange Traded Funds (ETFs) and neo-brokers.",
    "Requirements for liquidity risk management within funds were changing at the time of the mission.",
    "Responsibilities of regulators have grown, with new obligations to supervise digital asset markets, sustainable finance, and digital operational resilience.",
    "Increased market complexity has raised supervisory complexity.",
    "Consolidation in wholesale trading and asset management sectors affects oversight dynamics.",
    "Standardization via ETFs and neo-brokers alters product mix and operational profiles supervisors must assess.",
    "Evolving liquidity risk management requirements for funds require supervisory adaptation.",
    "Significant regulatory changes occurred prior to and during the mission.",
    "New supervisory obligations explicitly include:",
    "The technical note addresses supervision of liquidity risk in investment funds and oversight of trading activities within this evolving regulatory context.",
    "Subject: Asset and liability management; Asset management; Financial regulation and supervision; Financial sector policy and analysis; Financial sector stability; Liquidity; Liquidity risk",
    "Keywords: Asset management; derivative trading obligation; Financial sector stability; Global; Liquidity; Liquidity risk; management directive; money market fund regulation; trading ACTIVITES; trading activity",
    "**1fraea2025006**"
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