Money Market Funds (Regulation)
The Commission wants to increase the stability and transparency of money market funds.
The rules on investment policy, maturity and liquidity increase investor confidence. Cash buffers for money market funds with a constant asset value are not suitable for striking the right balance between investor confidence and financial market stability. The only alternative is a general ban on money market funds with a constant redemption value. Banning money market funds from soliciting external credit ratings from rating agencies obstructs the efficient allocation of capital.