Last week, the SEC adopted temporary rule 22e-3T under the Investment Company Act. 22e-3T relieves money market funds of their obligation, under Investment Company Act rule 2a-7, to make sure their market price doesn't fall below $1.00. When a money market fund's price has to be adjusted below a dollar it is called "breaking the buck." Only money market funds that are being liquidated pursuant to the Treasury's money market TARP program are elgible to use 22e-3T.
In September, the Primary Reserve Fund, the largest money market fund, broke the buck and was granted SEC relief (IC-28386, 2008 WL 4468809).
Wednesday, November 26, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment