Money-market funds should have limits imposed on the riskinessof their investments and should conduct regular stress tests, aglobal body of markets regulators said.
“Funds should not take direct or indirect exposures to equitiesor commodities,” the International Organization of SecuritiesCommissions said in a report on its website today. The funds, whichinvest in short-term debt, should hold buffers of liquid assets toprevent runs, IOSCO said.
“Some important measures have been taken to reform the MMFindustry,” IOSCO said in the report. “These funds may still presentvulnerabilities which could have broader consequences for thefinancial system.”
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
