Proposals aim to address vulnerabilities revealed in the money market sector in March 2020
Pandemic-driven volatility exposed systemic risks that reforms will target
Various regulators are reviewing how funds fared during market stress, and whether rule changes are in order
The analysis will include a review of the availability and use of liquidity management tools
Global policymakers seek lessons from the Covid-19 crisis
The pandemic revealed money market funds are still susceptible to extreme market stress
Flight to safety, spike in cash needs drove liquidity crunch in certain funds
The struggles experienced by some money market funds could spur regulators to take action
Global group of securities regulators has updated reviews of reforms for money market funds and securitizations
Review notes a “general lack of completeness” in fund managers’ policies and procedures