Prime MMFs accept need for higher liquid asset ratios
But industry wants regulators to steer clear of mandatory swing pricing or gates
Operators of prime money market funds (MMFs) are prepared to agree higher liquidity requirements to ensure the survival of the industry, following the publication of final recommendations for MMF reform by the Financial Stability Board (FSB). But in return, they are urging regulators to drop ideas that fund sponsors fear would drive away investors who use MMFs as a cash-management tool.
“There’s a strong consensus around a couple ideas. One is that liquidity levels need to rise … Then
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