The SEC votes to tighten rules for money market funds to require them to hold some assets that...


The SEC votes to tighten rules for money market funds to require them to hold some assets that could be easily converted to cash, and to disclose new information on fund values. The move came in response to an episode in September 2008 when the Reserve Primary Fund ''broke the buck'' and exposed investors to losses.

Comments (3)
  • Burning Madolf
    , contributor
    Comments (200) | Send Message
     
    This part is a little scary. No?

     

    Suspension of Redemptions: The new rules permit a money market fund's board of directors to suspend redemptions if the fund is about to break the buck and decides to liquidate the fund (currently the board must request an order from the SEC to suspend redemptions). In the event of a threatened run on the fund, this allows for an orderly liquidation of the portfolio. The fund is now required to notify the Commission prior to relying on this rule.
    27 Jan 2010, 05:24 PM Reply Like
  • Neil459
    , contributor
    Comments (2636) | Send Message
     
    So they have to hold more assets, but can suspend redemptions anytime. Does not sound like tightening to me. More journalistic misconduct.
    27 Jan 2010, 05:32 PM Reply Like
  • nightfly
    , contributor
    Comments (1015) | Send Message
     
    Yep, moving all funds out of MMkts already. Jeez, when will the fleecing ever end?
    27 Jan 2010, 05:33 PM Reply Like
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