Nnsec money market reform pdf

Six years later in 2014, the securities and exchange commission sec. Among the final reforms was a requirement that institutional prime and municipal. Esma announces update to reporting under the money market. Money market funds, sometimes called money funds, are a type of mutual fund developed in the 1970s as an option for investors to purchase a pool of securities that generally provided higher returns than interestbearing bank accounts. Background on money market funds a money market fund is a type of mutual fund that is required by law to invest in shortterm, lowrisk securities. The securities and exchange commission commission or sec is adopting amendments to certain rules that govern money market funds under the investment company act of 1940. Mmfs convert to floating net asset value fnav funds from. Money market fund reform sec open meeting july 23, 2014. Because the valuation process varies from firm to firm, nasdaq is adding a calculation time. After years of contested debates about the pros and cons of regulation for european money market funds mmfs and. The staff of the division of investment management has prepared the following responses to questions related to the money market fund reforms adopted in july 2014 and expects to update this document from time to time to include responses to additional questions. In the sec money market reform act of 2014, the commission indicates that fund families fund accountants should calculate floating navs periodically during the day e.

Establishes 3 categories of money market fundsretail, government, and institutional. Money market reform is a set of sec rule amendments meant to address any potential financial instability that could be caused by money market funds. The commission will consider whether to adopt final rules that reform the way money market funds are structured and operate in order to better equip them to address run risks, while preserving the benefits of money market funds. In 2014, reforms for us money market funds mmfs were adopted to address problems that surfaced during the 2008 financial crisis 2008 crisis. Money market funds mmfs provide shortterm finance to financial institutions, corporations and governments. New eu money market fund regulation deutsche bank research. In an effort to address concerns expressed by regulators that money market funds may contribute to financial instability, the securities and exchange commission recently adopted rules intended to change money market funds held by institutional inven96i keywords. In the past three years, european money market funds mmfs have grown by an impressive eur 260 bn to eur 1.