October 5, 2014
After years of heated debate, the Securities and Exchange Commission, the US regulator, recently adopted stricter rules for US money market funds. The new rules are intended to limit the potential systemic risks of money market funds by reducing the likelihood of runs on these vehicles.
This Financial Times article (written with Bob Pozen) looks at two critical questions: what constitutes a government security, and what differentiates an institutional from a retail money market fund?
