A CFA Institute blog entitled, "Update on Money Market Fund Reform: Standoff Continues", says, "Last month we examined the reforms that the Securities and Exchange Commission (SEC) is considering for U.S. money market funds as part of their effort to make the industry more transparent and less risky. SEC Chairman Mary Schapiro is calling for money market funds to maintain a capital buffer, restrict redemptions, and float their NAVs. Campaigns have been in full swing on both sides of this issue over the past month, with regulators reiterating calls for reforms and asset managers digging in their heels in opposition. Importantly, support within the SEC itself remains uncertain, and the reforms could very well be doomed without a majority of the five SEC commissioners' approval. That is, unless the Financial Stability Oversight Council (FSOC), a creation of the bureaucratic behemoth known as the 2010 Dodd-Frank Act, steps in. Politics may soon dominate the debate. Here are some of the new developments over past month: The SEC remains divided.... Key players continue to weigh in.... Nuclear option: FSOC intervention."
