To read the full version of this content please select one of the options below:

SEC holds roundtable on money market funds and systemic risk

Benjamin J. Haskin (Partner in, the Asset Management Group of Willkie Farr & Gallagher LLP, Washington, DC, USA)
Barry P. Barbash (Partner in, the Asset Management Group of Willkie Farr & Gallagher LLP, Washington, DC, USA)
Brian M. Hall (Associate in the Asset Management Group of Willkie Farr & Gallagher LLP, Washington, DC, USA)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 13 September 2011

Abstract

Purpose

This paper seeks to describe the recent SEC Roundtable on Money Market Funds and Systemic Risk and the context behind the roundtable.

Design/methodology/approach

The paper discusses the SEC's roundtable on money market funds. Context to the roundtable is provided by describing recent steps taken by regulators to address risks posed by money funds. The paper also examines the principal topics discussed at the roundtable, including the debate on the systemic risks posed by money funds and potential regulatory changes that could mitigate those risks.

Findings

A number of regulatory proposals that were raised at the roundtable could, if adopted by the SEC, significantly alter the operation of money market funds as we know them, including requiring money market funds to institute market‐based net asset value (“NAV”) instead of stable NAV, be subject to banking regulations, create an industry‐funded private liquidity bank, or maintain liquidity reserve requirements.

Practical implications

The roundtable is significant as it is likely to influence the future discussion of the regulation of money market funds, which has potential implications for both the money management industry and entities financed by money market funds.

Originality/value

The paper provides information on money market reform for investment advisers, broker‐dealers, regulatory lawyers, institutional investors, and investment companies.

Keywords

Citation

Haskin, B.J., Barbash, B.P. and Hall, B.M. (2011), "SEC holds roundtable on money market funds and systemic risk", Journal of Investment Compliance, Vol. 12 No. 3, pp. 26-29. https://doi.org/10.1108/15285811111172268

Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Authors