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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. 

SEC Proposes Rule Amendments To The Broker-Dealer Customer Protection Rule

Date 12/07/2023

The Securities and Exchange Commission today proposed amendments to Rule 15c3-3 (the Customer Protection Rule) to require certain broker-dealers to increase the frequency with which they perform computations of the net cash they owe to customers and other broker-dealers (known as PAB account holders) from weekly to daily. Net cash owed to customers and PAB account holders must be held in a special reserve bank account.

CFTC: Federal Court Orders Digital Asset Derivatives Platform And Florida Resident To Pay More Than $15 Million For Multiple Violations Of The Commodity Exchange Act - Defendant Facilitated Unlawful Futures Transactions, Failed To Register, Attempted To Manipulate The Price Of A Native Token

Date 12/07/2023

The Commodity Futures Trading Commission today announced that on July 5, Judge Roy K. Altman, in the U.S. District Court for the Southern District of Florida, issued a default judgment granting a permanent injunction against Florida resident Adam Todd and four companies he controlled – Digitex LLC, Digitex Limited, Digitex Software Limited, and Blockster Holdings Limited Corporation.

SEC Adopts Money Market Fund Reforms And Amendments To Form PF Reporting Requirements For Large Liquidity Fund Advisers

Date 12/07/2023

The Securities and Exchange Commission today adopted amendments to certain rules that govern money market funds under the Investment Company Act of 1940.

FSB Chair Outlines Work On Recent Banking Turmoil And To Finalise Crypto-Asset Recommendations

Date 12/07/2023

• Chair warns of challenging outlook for the global financial system.
• The FSB has reprioritised its work to focus on lessons learned from recent banking-sector turmoil, including lessons for the effective implementation of the international resolution framework, the interaction between interest rate and liquidity risk and the role of technology and social media.
• The FSB will issue next Monday its finalised recommendations for the regulation, supervision and oversight of crypto-assets and markets, and of global stablecoin arrangements. Attention will then turn to their full and effective implementation globally to avoid a fragmented regulatory system.

EBA Consults On Draft Technical Standards On Complaints Handling Procedures Under The Markets In Crypto-Assets Regulation

Date 12/07/2023

The European Banking Authority (EBA) published today a Consultation Paper on draft regulatory technical standards (RTS) on complaints handling procedures for issuers of asset-referenced tokens (ARTs) under the Markets in Crypto-Assets Regulation (MiCAR). These draft RTS aim at ensuring prompt, fair and consistent handling of complaints by holders of ARTs and other interested parties.

BIS: Basel Committee Finds The United States Largely Compliant With Its Net Stable Funding Ratio Standard And Large Exposures Framework

Date 12/07/2023

• Basel Committee publishes assessment reports on the implementation of its global standards in the United States (US).
• Assessments find US regulations largely compliant with the Basel Committee's Net Stable Funding Ratio standard and large exposures framework. 
• These publications form part of the Committee's Regulatory Consistency Assessment Programme (RCAP).