Edge Capital Research Team
Money market funds (MMFs) remain under fire as they try to maintain their role in the liquidity markets. On July 23, 2014, the SEC Commissioners voted 3-2 to adopt new reforms to money market funds. The SEC’s rules vary based on the type of fund’s investments and the type of shareholder. The rules require more disclosure which will go into effect between nine and 18 months after publication of the rule. The more substantive changes including moving institutional prime funds to a Variable or Floating Net Asset Value (FNAV), gates and liquidity fees will be implemented in two years following final publication of the rule in the Federal Register.