SEC Approves Money Market Fund Reforms

Law360, New York (July 23, 2014, 11:59 AM EDT) -- A divided U.S. Securities and Exchange Commission on Wednesday voted 3-2 to pass a series of long-awaited reforms to the operations of money market mutual funds.

The rules, as expected, will require prime money market funds that cater to institutional investors to adopt a floating net asset value, as opposed to the fixed $1 NAV money market funds have now. The rules are intended to remove the "first mover advantage" and reduce the risk to these funds, which the commission said are more susceptible to runs....
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