AFP writes in "​Questions About the Floating NAV,", "The Securities and Exchange Commission (​SEC) recently proposed changes to the rules governing money-​market funds (​MMFs) and, as part of the regulatory process, is seeking public comments. To help focus its proposal, the SEC has a number of questions it would like answered -- particularly about the proposed floating net asset value (​NAV), which would allow MMF shares to fluctuate on prime institutional funds. Treasury and finance professionals can submit comments here after reading the proposal and the SEC'​s questions. You can read other public comments here. Specifically, the SEC would like treasury and finance professionals to address the following questions: Do commenters agree that floating a money market fund'​s NAV would lessen the incentive to redeem shares in times of fund and market stress that can result from use of amortized cost valuation and penny rounding pricing by money market funds today? What would be the effect of the other incentives to redeem that would remain under a floating NAV with basis point pricing requirement? Would floating a money market fund'​s NAV provide sufficient transparency to cause investors to estimate more accurately the investment risks of money market funds? Do commenters believe that daily disclosure of shadow prices on fund websites would accomplish the same goal without eliminating the stable share price at which fund investors purchase and redeem shares? Why or why not?" The piece excerpts over a dozen more of the SEC'​s questions on floating NAVs as well.

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