The author reports on regulatory changes that the Investment Company Institute (ICI) would like to be see made in regards to money market funds. The author states that the ICI would like steps to be taken in order to make money market funds more transparent. Steps that the ICI would like ...
during which one prominent money market fund “broke the buck,” and countless others received financial support from their advisers and/or obtained insurance against losses from the US Department of the Treasury. In 2010, the SEC amended Rule 2a-7 to, in part, require money market funds to ...
dollar-denominated money market instruments as defined by applicable U.S. Securities and Exchange Commission regulations (Rule 2a-7 of the Investment Company Act of 1940), including all types listed above as well as commercial paper, certificates of deposit, corporate notes, and other private ...
an update to rule amendments to specify how funds must calculate weighted average maturity and weighted average life a requirement that stable NAV funds convert to a floating share price if future market conditions result in negative fund yields ...
Related to Money-market funds:Money market mutual funds money market n. 1.The trade in short-term, low-risk debt securities, such as commercial paper and US Treasury bills. 2.A mutual fund that invests in short-term debt securities. Also calledmoney market fund. ...
Money market funds, in the United States, are regulated by the Securities and Exchange Commission's Investment Company Act of 1940. Rule 2a-7 of the act restricts investments in money market funds by quality, maturity and diversity. Under this act, a money fund mainly buys the highest rated...
Rule #3:Never break Rule #1. If you have a lot of cash building up in a money market fund, it’s time to pay attention. Rules enacted two years ago that affect the funds’ regulation are set to become effective next month. If you own a money market fund subject tothese rules, your...
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This has been supported by a stable net asset value (NAV) of $1 per share which continued to ensure a high degree of diligence and discipline within the money market industry. Outlined in this section is an overview of Rule 2a-7 guidelines for money market funds and triple-A rating ...
A money market fund is not allowed to invest more than 5% in any one issuer to avoid issuer-specific risk. However, government-issued securities and repurchase agreements are an exception to this rule.7 Advantages and Disadvantages of Money Market Funds Pros Very low-risk Highly liquid Better r...