Washington, D.C., July 12, 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.

“Money market funds play an important role in the orderly functioning of the short-term funding markets. Investors include individual retail investors, retirement accounts, college savings plans, health savings plans, endowments, small businesses, corporate treasurers, pension plans, state and local governments, variable annuities, insurance companies, and nonprofit organizations.

“While we support the goals of enhancing resilience of money market funds, we remain concerned that imposing additional fees and operational costs on shareholders could adversely impact money market funds.  We encourage the SEC to closely monitor the implementation of these new rule amendments and stand ready to assist funds as questions and challenges arise, particularly in light of a compliance date only a year in the future that comes amidst other crucial operational priorities such as the move to T+1.   We also trust that the SEC will monitor the impact of these amendments and make future refinements as warranted to ensure that money market funds can continue to play their important role in financial markets.”

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SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development.  SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA).