Following on from the introduction of the mandatory use of at least two liquidity management tools (“LMTs”) by all UCITS and open-ended alternative investment funds (“AIFs”) in recent reforms to the Alternative Investment Fund Managers Directive (“AIFMD”) and UCITS Directive (known as AIFMD 2.0), the European Securities and Markets Authority (“ESMA”) has published two consultation papers relating to the use of LMTs.
