Fri, Mar 6, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

SEC approves money market rules

Thursday, July 24, 2014

Bailey McCann, Opalesque New York:

Earlier this month, Opalesque reported on a potentially growing turf war between the SEC and FSOC. Part of that battle hinges on rules voted in by the SEC today. On a split vote, SEC Commissioners agreed to institute a floating NAV for certain money market funds. The new rules aren't as far reaching as FSOC desired, and are basically a give away to Charles Schwab which has been involved with the process throughout.

Provisions as decided would set up floating NAV's for money market funds that involve corporate debt or municipal securities. Another part of the rule would set up a gating system for redemptions from money market funds in the event of a big market swing to allow for a slower unwind on those funds. The rules essentially fall in line with what Wall Street wanted for them.

Each of the Commissioners that voted against had different reasons. Commissioner Stein voted against the proposed rule saying that sophisticated investors could use the provision that limits redemptions to front run sell-offs. Commissioner Piwowar also voted against although it seems that any rule would be over the line for him in this instance.

"Today’s reforms will fundamentally change the way that most money market funds operate. They will reduce the risk of runs in money market funds and provide important new tools that will help further protect investors and the financial system in a crisis," Chairwoman Mary Jo White said in her rema......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Patrick McCormack to shut down hedge fund Tiger Consumer[more]

    Komfie Manalo, Opalesque Asia: Patrick McCormack is shutting down his hedge fund Tiger Consumer Management after 15 years "to spend more time with his family," reported Reuters. Tiger Consumer ended February up 4.6% (+3.9% YTD) and assets roughly $1.4bn, reported

  4. Event-driven strategies lead hedge fund gains in February while CTA rally shows signs of fatigue[more]

    Komfie Manalo, Opalesque Asia: Hedge funds ended February on a good note (+0.8%), confirming the positive momentum witnessed since the start of the year, reported Lyxor Asset Management in its Weekly Briefing. As of the end of February, the Lyxor He

  5. Large hedge funds grow assets almost three times faster than sub $5bn funds[more]

    Komfie Manalo, Opalesque Asia: As institutional investors’ needs continue to evolve, they are increasingly looking to work with larger hedge fund managers and intermediaries who can meet their appetite for comprehensive portfolio solutions, said Barry Bausano, co-head of Global Prime Finance at D