The Reuters article says, "Money market fund regulations adopted by U.S. securities regulators in 2010 reduced risks in the $2.5 trillion industry, according to a report sponsored by the U.S. Chamber of Commerce that questions the need for further reforms. The report, drafted by three finance and economics professors, concludes that the Securities and Exchange Commission's 2010 rules have left money market funds more liquid and better able to withstand a wave of customer withdrawals.... The report is the latest effort by the Chamber of Commerce to fend off efforts by SEC Chairman Mary Schapiro and the Financial Stability Oversight Council, or FSOC, to impose another round of rules on the money market fund industry. The chamber released the report just two days before the FSOC is slated to meet behind closed doors, where the topic of money market funds is expected to be discussed. Last month, Treasury Secretary Timothy Geithner said the FSOC will begin considering new reforms after Schapiro failed to attract the three SEC votes she needed to advance her own plan.... Three SEC commissioners ... have also expressed skepticism and have said they want first to study the effects of the 2010 reforms before proceeding with new rules. The SEC's economists are currently conducting the study requested by the three commissioners, and results could come in a few weeks, according to one person familiar with the matter. Despite his resistance to Schapiro's original proposal, Gallagher has said he hopes the agency will consider a fresh package of reforms. He has also said he would be open to considering a floating net asset value coupled with allowing fund boards to impose liquidity "gates." Any move to a floating net asset value is likely to be strongly opposed by the industry."
