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more links »"BNY Mellon to Host Web Seminar on New Rules for Money Market Funds"
"BNY Mellon to Host Web Seminar on New Rules for Money Market Funds" says a press release on PRNewswire. It explains, "BNY Mellon Asset Servicing, the global leader in securities servicing, will host a web seminar on the impact of proposed rule changes by the U.S. Securities and Exchange Commission on money market funds. The intent of the seminar is to educate senior-level mutual fund company executives and consultants about the proposed changes." Joseph Keenan, MD at BNY Mellon Asset Servicing, says, "These new regulations are likely to result in greater liquidity requirements, an increase in reporting and restrictions on securities investing. The changes could be dramatic and could alter the purpose and role of these funds investors' portfolios." The session is scheduled for 1 p.m. on February 10, 2010. Panelists include: ICI's Jane Heinrichs, `BNY Mellon's Matthew Bromberg, Stradley's Joan Swirsky, Dreyfus' Edward Von Sauers. JP Morgan Global Liquidity will also host two Money Market Update Webconferences on Thursday at 10:00 a.m. and 11:30 a.m.
SEC's Mary Shapiro at "SEC Speaks" on "Looking Ahead and Moving Forward"
U.S. Securities & Exchange Commission Chairman Mary Schapiro gave a speech Friday at an "SEC Speaks" event entitled, "Looking Ahead and Moving Forward," which contained a brief section on money market mutual funds. Shapiro said, "More recently, we adopted rules that will make money market funds more resilient by strengthening their credit quality, liquidity and maturity standards. Our rules also establish a new on-line disclosure regime for money market funds -- including disclosure of a fund's "shadow" or mark-to-market NAV -- and our rules take steps to limit the disruption caused by any fund "breaking the buck," or falling below the standard $1 net asset value. Importantly, our money market fund reforms are not yet done. Looking ahead, we will be considering yet more measures to address money market fund risk, especially the risk of a run on money market funds. In particular, I have directed our staff to examine the merits of a floating, mark-to-market NAV for money market funds, rather than the stable $1 price. Other ideas under consideration include mandatory redemptions-in-kind for large redemptions (such as by institutional investors); "real time" disclosure of "shadow" NAV; a private liquidity facility to provide liquidity to money market funds in times of stress; and a possible "two-tiered" system of money market funds, with a stable NAV only for money market funds subject to greater risk-limiting conditions and possible liquidity facility requirements."
SmartMoney's "For Better Yields, It's Bank -- Not Brokerage"
SmartMoney's "For Better Yields, It's Bank -- Not Brokerage". It says, "Cash held at brokerage houses is typically deposited in so-called 'sweep' accounts. These accounts offer convenience and liquidity, with features like check-writing capabilities, a debit card and free ATM withdrawals. Some brokerages call them cash or financial management accounts, and others have even branded them 'savings accounts.' The problem is that the yields these accounts deliver are paltry these days.... There are no hard numbers on the amount of cash lying around in sweep accounts these days, and chances are that with the stock market's recovery from its 2009 lows and the Federal Reserve's rock-bottom rate policy, some investors are moving it into equities or higher-yielding bank accounts. Still, the assets parked in sweep accounts could add up to $600 billion, according to Peter Crane, president of Crane Data LLC, which tracks money-market mutual funds." The article adds, "These days, sweep accounts pay an average 0.05%, according to Crane Data, but depending on the brokerage, you could be earning as little as 0.01% and rarely more than 0.07%." Note that the piece contains a data table with rates excerpted from Crane Data's weekly Brokerage Sweep Intelligence. See also, NY Times' and AP's "4 Tips on Shopping for Money-Market Mutual Funds".