Advocacy website www.preservemoneymarketfunds.org, a venture from ICI and communications firm MWW, sent out a statement recently on, "Promising Remarks on Money Market Funds from Mary Jo White." They say, "President Obama has nominated attorney Mary Jo White to become SEC Chairman. What are her views on money market funds? Based on her recent testimony before the Senate Committee on Banking, those who use money market funds have reason to hope that under her leadership, regulators will take a more thoughtful and careful approach to these funds." They quote White (during Senate confirmation hearing to consider her nomination to head the SEC, March 12, 2013), "I'm also acutely aware of the value of the money market fund product. So whatever is done, we want to take care that that is not harmed by this."
The e-mail explains, "For one, White believes that the SEC, not the Financial Stability Oversight Council, should set the rules on money market funds. These funds, she said, "are in the heartland of the SEC's expertise." Second, White clearly recognizes the importance of money market funds to investors -- and the risks of bad policy choices. As noted above, she said she was "acutely aware of the value of the money market fund product.""
PreserveMoneyMarketFunds.org adds, "Although new SEC leadership may provide a welcome new direction on this issue, the need remains for consistent vigilance in preserving the value and benefits of money market funds. Regulators continue to consider ill-advised proposals, such as imposing floating net asset values. New proposals could come in the next few weeks. We will continue to update you on breaking issues and when your voice may again need to be heard."
In other news, a press release entitled, "Cachematrix Enters Asia and Pacific Market via Bank of Tokyo–Mitsubishi UFJ," says, "Cachematrix, the leading provider of money market fund and fixed income trading technology for banks and financial institutions, announced today that its partnership with Union Bank, N.A. has led to a direct relationship with parent company The Bank of Tokyo–Mitsubishi UFJ, Ltd. (BTMU) to provide trading technology for the bank's corporate clients."
It explains, "With growing demand for liquidity and cash management solutions from its corporate customers, BTMU had the vision to capitalize on Cachematrix's existing relationship with Union Bank. Treasurers at global, multi-national corporations are increasingly looking to implement automated short-term cash management systems via portal technology because corporations place a premium on the safety, convenience, and liquidity that Money Market Fund and Bank Product portals provide. As independent, non-bank portal providers continue to take market share (and revenue) from banks that do not offer portal technology, banks are quickly realizing the need to offer an internal proprietary solution."
Founder and CEO George Hagerman comments, "I am very excited about our new relationship with The Bank of Tokyo–Mitsubishi UFJ. This is an excellent growth opportunity for Cachematrix as we expand into the Asia and Pacific region. I can tell you that from our long standing and successful relationship with our partner Union Bank, I am not at all surprised to see their parent company leading the way in Asia with regard to technology solutions."
Hagerman adds, "With bank deposits at such immense levels, corporations are looking for other ways to advance their relationship with their banks through diversifying into other bank products, and that is what Cachematrix delivers."
