SEC Requests Comment on Potential Money Market Fund Reform Options Highlighted in President’s Working Group Report

The Securities and Exchange Commission today published a request for public comment on potential reform measures to improve the resilience of money market funds as highlighted in a report of the President's Working Group on Financial Markets issued in December 2020. The report noted that certain short-term funding markets experienced stress in March 2020 amid economic concerns related to the onset of the COVID-19 pandemic. “Money market funds play a significant role in our short-term funding markets, and they are utilized by both large institutions and individual retail investors,” said SEC Acting Chair Allison Herren Lee. “Comments received will assist the SEC and other relevant financial regulators in further analysis of potential reforms.” The report also discusses prior money market fund reforms, the evolution of different types of money market funds since the 2008 financial crisis, and events in certain short-term funding markets in March 2020.