Presentation slides - Federal Reserve Bank of New York

Reforming MMFs: A Timeline
• Sept.-Oct. 2008: Run on (institutional) prime MMFs.
• January 2010: SEC adopts new rules for MMFs (see [8]), tightening
portfolio rules:
‣ New liquidity requirements.
‣ Shorter asset maturities.
‣ More stringent credit-quality standards.
‣ Extensive disclosure requirements (monthly).
‣ Ability to suspend redemptions and liquidate.
• The reforms did not address the structural vulnerabilities of MMFs,
leaving them susceptible to runs.
Reforms made it less likely that risks to MMFs materialize.
But, they did not alter the incentive for investors to run from a
troubled fund.
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