Money Market Funds

Following periods of market volatility and liquidity issues seen in 2020, efforts continue to ensure Money Market Funds (MMF) are resilient to credit and liquidity stresses.

Regulators seem to be particularly concerned, that MMFs could have redemption concerns issues, finding themselves unable to sell assets during stressed situations. SIFMA’s Asset Management Group continues to engage with the U.S. Securities and Exchange Commission, the Financial Stability Board, and other global regulators as potential rulemakings develop. Among the proposals under consideration, SIFMA AMG members and many other market participants have argued that delinking liquidity from fees and gates would be helpful in counteracting any potential liquidity concerns; most of the other proposals under consideration should be further studied as they could harm the functioning of these vital markets without actually improving their resiliency.