Securities regulators on Wednesday voted unanimously to propose reforms that would target a portion of the $2.6 trillion money market fund industry, aiming to reduce the risk that panicked investors might abruptly withdraw their money in times of stress.
The Securities and Exchange Commission's two-pronged proposal would require prime funds used by institutional investors to move to a floating net asset value from a stable value.
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It would also allow fund boards of all non-government funds to impose a combination of liquidity fees and gates during times of stress.
The two alternatives could be adopted alone or jointly.
(Reporting by Sarah N. Lynch; Editing by Jeffrey Benkoe)