The US Securities and Exchange Commission has finalised its reforms of the $5.5trn money market fund industry, aiming to prevent rapid outflows in times of market stress.
Reforms to the sector came in response to the $800bn in redemptions prime money market funds saw at the start of the coronavirus pandemic in March 2020, when the Federal Reserve was forced to intervene. In a statement yesterday (12 July), the SEC revealed it would not be pursuing a controversial "swing pricing" rule, which was opposed by many asset managers. This pricing mechanism would have required funds to adjust the net asset value of withdrawals to reflect the costs of exit, preventing remaining investors from suffering as a result. PIMCO charged by US SEC over disclosure and ...
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