The SEC requested comment on the potential money market fund reform measures outlined in the President's Working Group of Financial Markets ("PWG") December 2020 report (see previous coverage).

In addition to certain policy measures described in the PWG report, the SEC is seeking feedback regarding the effectiveness of previously enacted reforms. Specifically, the SEC requested that commenters weigh in on the success of measures in (i) addressing the vulnerabilities associated with the structure of money market funds that may increase stress on short-term funding markets, (ii) enhancing short-term funding market resilience and functioning and (iii) decreasing the probability that official sector interventions will be necessary to prevent or stop future money market fund runs.

Comments must be submitted within 60 days of the request's publication in the Federal Register.


One of the most important issues that the financial regulators (not just the SEC, but the CFTC and the banking regulators, as well) should be considering is market liquidity. Money market funds should be only part of the focus; clearinghouse margin requirements are another important piece of the puzzle.

It will be interesting to see how much attention the SEC and the regulators will devote to these crucially important, but somewhat esoteric, issues as opposed to issues that may be more newsworthy (at least until there is another major market event).

Primary Sources

  1. SEC Press Release: SEC Requests Comment on Potential Money Market Fund Reform Options Highlighted in President's Working Group Report
  2. SEC Comment Request: Request for Comment on Potential Money Market Fund Reform Measures in President's Working Group Report

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