Impending U.S. money market fund (MMF) reforms are creating new investment challenges for organizations. Understanding these reforms is vital when it comes to navigating the changing landscape.
Beginning on October 14, 2016, new SEC rules come into effect that will seek to strengthen the MMF industry through the imposition of a floating Net Asset Value (NAV). This rule will also allow for liquidity fees and redemption gates on prime and municipal institutional funds, and it has already increased the amount of government securities and the equivalent that government funds have to hold.
While implementation is still months away, several funds have chosen to comply earlier. This means that companies investing in MMFs should be aware of the impact of these changes and develop a concrete plan that best fits their investment strategies.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
