Fitch Ratings launched a "New European Money Fund Reform Hotspot." They explain in a statement, "We are pleased to announce that Fitch Ratings has launched a new hotspot on European Money Market Fund Reform. The hotspot features Fitch'​s latest commentary and analysis on the European money fund reform process. We will provide insightful and relevant content to help you navigate the important changes that will be brought about by these reforms (​likely to be effective in late 2018)." They add, "The most recent topic to feature on the hotspot is an analysis of liquidity levels in the portfolio of existing rated funds, calculated in accordance with the liquidity definitions in the proposed reforms. We find that liquidity levels are high, well above the levels at which fund boards must consider applying liquidity fees or redemption gates once the reforms are effective." The release, "Fitch: European Money Fund Regulatory Liquidity High," explains, "Fitch Ratings says that liquidity levels in rated European money funds are high, relative to regulatory thresholds that are expected to go into effect late 2018. Average weekly liquidity was 38% across the portfolio of Fitch-​rated funds as of end-​December 2016, well above the 10% threshold at which government-​only constant net asset value (​CNAV) and low volatility net asset value (​LVNAV) funds would be forced to impose a liquidity fee or redemption gate once the reforms are in force (​likely in late 2018)."

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