Stability Watchdog Calls for Money-Market Reforms to Accelerate
- Fund industry faces risk from ‘disruptive redemptions:’ report
- US regulators approved a third round of reforms in July 2023
A bundle of new one dollar bills in Fort Worth, Texas.
Photographer: Dylan Hollingsworth/BloombergThis article is for subscribers only.
The Financial Stability Board is urging authorities to strengthen rules that would prevent money-market funds from facing a liquidity crunch.
The difficulty of cashing out investments to keep up with investor demands continues to be the biggest weak spot for money market funds globally, the group said in a report. Local regulators should consider whether rules, such as minimum liquidity requirements, need to improved, wrote the authors.