Crane's Money Fund University, which takes place next Thursday and Friday (Jan. 13-14) at the Westin Jersey City Newport, recently added a session to review and discuss the President's Working Group on Financial Markets Report and its list of potential Money Market Fund Reform Options. The timing for a discussion couldn't be better as the vast majority of comment letters, which are due this Monday (and which have yet to be submitted), should be released just prior to the conference. Look for excerpts and reaction to feedback letters on the PWG Report on MMF Reform all next week. (Crane Data is currently wrapping up the results of its Subscriber Survey on "Regulatory Reforms and the 2011 Outlook" and should submit its comments later this week. We're still accepting survey responses.)
As we said in our Oct. 22 News "President's Working Group on Financial Mkts Gives MMF Reform Options", the PWG was tasked with "detailing a number of options for reforms related to money market funds [to] address the vulnerabilities of money market funds that contributed to the financial crisis in 2008." `While the report didn't strongly endorse any option, it appears to have discounted the possibility of a floating NAV and support the concept of a private liquidity facility. But we've yet to see the majority of comments on the PWG Report.
Our Nov. 4 News piece, "SEC Posts Request for Comment on PWG Report MMF Reform Options," said, "As contemplated by the President's Working Group report, the SEC is requesting public comment on the options described in the report, including the effectiveness of the options in mitigating any systemic risk or susceptibility to runs associated with money market funds, as well as their potential impact on money market fund investors, fund managers, issuers of short-term debt, and other stakeholders. Comment received will assist the SEC and the Financial Stability Oversight Council in their further analysis."
The Request for Comment continues, "The Securities and Exchange Commission is seeking comment on the options discussed in the report presenting the results of the President's Working Group on Financial Markets' study of possible money market fund reforms. Public comments on the options discussed in this report will help inform consideration of reform proposals addressing money market funds' susceptibility to runs.... Comments should be received on or before January 10, 2011." It adds, for further information, contact Daniele Marchesani or Sarah ten Siethoff at (202) 551-6792, Division of Investment Management, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-8549."
The inaugural Crane's Money Fund University will offer attendees an affordable and comprehensive two day, "basic training" course on money market mutual funds. (See www.moneyfunduniversity.com for more details.) The two-day educational event will cover the history of money funds, interest rates, Rule 2a-7, ratings, rankings, money market instruments such as commercial paper and repo, and portfolio construction and credit analysis. Attendee registration for Crane's Money Fund University is $600, and sponsors and exhibitor include: BofA Global Capital Management, Fitch Ratings, Wells Fargo, Citi, Commerzbank, Fidelity, G.X. Clarke, Invesco, S&P, and ICD. (The session on the PWG Report and MMF Reforms will take place Thursday afternoon (Jan. 13) at 4:30pm and will be followed by cocktails.)
