SEC to Release New Rules for $5.5 Trillion Money-Market Industry
- Wall Street’s main regulator plans to vote on rule July 12
- Commission first released proposed rules in December 2021
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The US Securities and Exchange Commission is set to impose a slate of new rules on money-market mutual funds, setting up a potential clash with titans in the $5.5 trillion industry.
Wall Street’s main regulator plans to hold a meeting on July 12 to finalize the changes, which are meant to prevent the kind of outflows that occurred in March 2020 when the onset of the pandemic roiled markets. That turmoil prompted the Federal Reserve to intervene and rescue money-market funds for the second time in 12 years, spurring calls for the SEC to impose tougher regulations.