Dow Jones writes "Trade Group: Obama Disclosure Plan Must Be Comprehensive". The piece says, "The Obama administration's proposal targets another area of mutual fund regulation by endorsing the SEC's plans to roll out new rules to improve the credit quality and liquidity of money market funds. Those proposed rules, which the SEC will unveil next week, come in response to the troubles surrounding the Reserve Primary Fund, which 'broke the buck' last fall when its net asset value fell below $1 a share. That led to runs on other funds after panicked investors rushed to pull their money out.... Among the things the SEC said it is considering is whether money markets should have a floating NAV instead of a stable $1-a-share NAV, a concept the Obama plan urged the agency to explore. The Investment Company Institute previously made recommendations for new regulations on money market funds to improve credit quality and liquidity. And while the SEC is expected to explore some of the institute's suggestions, Stevens said his group will speak out against any attempt to push for creating a floating NAV. A stable NAV, he said, has always been a 'bedrock' of money market funds and the lack of one would harm the industry, making the products less appealing to investors." Stevens told Dow Jones, "If you float the net asset value, virtually everyone in our industry believes these products will go away."
