(wire)
SEC to require money market disclosure
The Securities and Exchange Commission recently adopted new rules that will require money market funds to disclose on a delayed basis their fluctuating shadow net asset values, rather than their $1-per-share value.
Under the new rules, money market funds will be priced at the $1-per-share value, but will also be required to report their floating value based on the market value of its underlying securities after 60 days.
The mutual fund industry has largely opposed the new rule, saying it could cause a run on the funds when values decline. Meanwhile, advocates of the move say that requiring funds to disclose a shadow net value on a delayed basis is a step toward transparency.
Under the new rules, money market funds will be priced at the $1-per-share value, but will also be required to report their floating value based on the market value of its underlying securities after 60 days.
The mutual fund industry has largely opposed the new rule, saying it could cause a run on the funds when values decline. Meanwhile, advocates of the move say that requiring funds to disclose a shadow net value on a delayed basis is a step toward transparency.
