Dow Jones writes "Amendments To Money-Market-Fund Rules Effective May 5". The article says, "Amendments meant to make the $3.3 trillion money-market fund industry more resilient will take effect May 5. The Securities and Exchange Commission posted the final amendments, which it says offer additional shareholder protections, to its Web site Tuesday with the effective spring date. However, the posting also lists various compliance dates for the amendments, giving funds extra time to meet some requirements, such as disclosing certain portfolio information on a public Web site and to the commission. In staggering the compliance dates, the SEC appears to be making an effort to accommodate the funds's normal schedule of meetings and oversight, said Peter Crane, president of Crane Data LLC." Crane says, "There was some speculation that the maturity and liquidity provisions would be pushed out to later this year to coincide with potential interest rate hikes, but this means that most of the changes will likely go into effect before the Fed starts hiking rates. So money funds could feel that bite a little bit." They must be able to process transactions at prices other than a stable $1 net asset value no later than Oct. 31, 2011, says DJ, quoting Crane, "Systems personnel will be pleased that they have a little time to deal with that nasty issue." Overall, money funds aren't likely to be surprised by the schedule, he said. "They were gearing up for it anyhow. I think money funds are resigned to their fate at this point." See also, WSJ's "Treasury Program Mixes Up Money Markets".
