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Statement On Money Market Funds, SEC Chair Gary Gensler, July 12, 2023

Date 12/07/2023

Today, the Commission is considering adopting final rules to enhance money market funds’ liquidity and investor protection. I support this adoption because it will enhance these funds’ resiliency and ability to protect against dilution.

Statement On Customer Protection Rule, SEC Chair Gary Gensler, July 12, 2023

Date 12/07/2023

Today, the Commission is considering proposing amendments that would require broker-dealers carrying large customer balances to calculate and deposit on a daily basis the net cash they owe their customers and other broker-dealers. I am pleased to support this proposal because, if adopted, it would help protect customers in the event that a broker-dealer fails.

NGX Mulls Introduction Of Fiscal-Category Incentives For Listed Corporates

Date 12/07/2023

Nigerian Exchange Limited (NGX) says it plans to work with the government on the introduction of fiscal category incentives as well as advocacy for listed companies on their challenges.

Statement On Proposed Amendments To The Customer Protection Rule, Commissioner SEC Caroline A. Crenshaw, July 12, 2023

Date 12/07/2023

Thank you, Chair Gensler.  Since its adoption over 50 years ago, the customer protection rule has been a cornerstone of our broker-dealer regulatory regime.  The rule protects customer funds and securities by obligating firms to maintain custody of their customers’ securities, safeguard customer cash by segregating it from their proprietary business activities, and return the assets promptly to customers upon request.  Together with the Securities Investor Protection Act, or SIPA, passed two years earlier, the customer protection rule is designed to ensure that if a broker-dealer fails financially, its customers’ securities and cash will be readily available to be returned to those customers.  If the broker-dealer moves to liquidation, SIPA and the customer protection rule help ensure that customer securities and cash are distributed to customers ahead of other creditors.

Statement On The Adoption Of Money Market Fund Reforms, SEC Commissioner Caroline A. Crenshaw, July 12, 2023

Date 12/07/2023

Money market funds (MMFs) play an important role in our markets. They provide liquidity, short-term yield, and diversification. They invest in high-quality, short-term securities, such as Treasury bills, repurchase agreements, or commercial paper whose value is stable under normal market conditions. And, saliently, they are generally redeemable on demand, so investors can rely on MMFs to meet their everyday cash needs – perhaps for a company to make payroll or for a family to pay their mortgage.

Statement On Proposed Amendments To Exchange Act Rule 15c3-3, SEC Commissioner Hester M. Peirce, July 12, 2023

Date 12/07/2023

Thank you, Mr. Chair.  I support proposing to amend Exchange Act rule 15c3-3 to decrease the likelihood of customer losses in the event of a broker-dealer failure.  Rule 15c3-3 effectively segregates customer activity from a broker-dealer’s proprietary activity. 

Strengthening The Resiliency Of Money Market Funds, SEC Commissioner Jaime Lizárraga, July 12, 2023

Date 12/07/2023

The Commission is adopting reforms to strengthen the resiliency of money market funds.  These reforms, which I support, should help reduce money market funds’ susceptibility to risk, especially during adverse market events.

SIFMA Statement On Final SEC Money Market Fund Rule

Date 12/07/2023

SIFMA today issued the following statement from president and CEO Kenneth E. Bentsen, Jr. on the Securities and Exchange Commission’s vote to adopt changes to Rule 2a-7 that govern the operation of U.S. money market funds:

“SIFMA is pleased that the SEC opted against imposing swing pricing on money market funds.  While we remain skeptical that anti-dilution measures are necessary, the path of liquidity fees for institutional money market funds is a more feasible alternative. Additionally, SIFMA is pleased that the Commission removed fees and gates from Rule 2a-7. SIFMA supports increased daily and weekly minimums.  Together, these measures are sufficient to enhance money market fund resiliency in light of March 2020 events."

Improving The Effectiveness Of The Customer Protection Rule, SEC Commissioner Jaime Lizárraga, July 12, 2023

Date 12/07/2023

Today’s proposal to update the customer protection rule for carrying broker-dealers falls in the category of “there’s always room for improvement.”  By increasing efficiency, liquidity, and competitiveness, these updates will improve the daily functioning of our capital markets, increase confidence, and protect investors.

Statement On Final Money Market Fund Reforms; Form PF Reporting Requirements For Large Liquidity Fund Advisers; Technical Amendments To Form N-CSR And Form N-1A, SEC Commissioner Mark T. Uyeda, July 12, 2023

Date 12/07/2023

Thank you, Chair Gensler.  This is the third round of money market reforms since 2010.  This round is primarily designed to address vulnerabilities exposed during the market volatility of March 2020.  Notably, the Adopting Release acknowledges that one of the 2014 reforms - the ability of a money market fund to impose liquidity fees or redemption gates after crossing a specified liquidity threshold - contributed to investors’ incentives to redeem from institutional prime money market funds in March 2020.  In other words, the 2014 reforms exacerbated the very problems that they were supposed to address.