Schapiro has been urging the commission to consider both capital buffer requirement and a 30-day hold back on redemption requests from investors, or to impose a floating net asset value, essentially breaking the buck on the $1-per-share value that current funds follow. Her comments suggest that she is leaning toward floating the NAV. [ETFs Capitalize on Money Funds’ Uncertain Outlook]
“I want money market funds to be reflective of the fact that they are investment products, and the value does fluctuate,” Schapiro added.
Schapiro would require three of five votes to go ahead with the proposal. [Money Market Rules May Boost Short-Duration ETFs]
The mutual fund industry has been arguing that the imposed regulation would hurt investors and block financing for businesses, states and local governments, even hamper further economic growth, reports Jason Kephart for InvestmentNews.
For more information on the money markets, visit our money markets category.
Max Chen contributed to this article.