Money Market Funds May Face Tougher Regulation in IOSCO Plan
Global regulators are weighing tougher rules for money market funds over concerns that they may amplify future financial crises.
“Confidence shocks” in such funds can “quickly have a broader macroeconomic impact,” the International Organization of Securities Commissions said in a document published today on its website.
Options being considered by regulators include imposing stricter liquidity requirements on money market funds, and reducing their reliance on credit ratings, IOSCO said.
IOSCO, based in Madrid, is seeking views on the plans until May 28.
To contact the reporter on this story: Jim Brunsden in Brussels at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Aarons at email@example.com
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.