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(snip)regulation will be implemented to enforce that "money market fund managers will have the option to 'suspend redemptions to allow for the orderly liquidation of fund assets" or in other words implement redemption "gates." The logic: spook participants in the $2.6 trillion money market industry with the prospect of being gated (i.e., having no access to ones funds) and force them to reallocate funds elsewhere.
Moments ago the gates arrived, when following a close 3-2 vote, the SEC adopted new rules designed to curb the risk of investor runs on money market funds, capping the end of a years-long heated debate between regulators and the industry dating to the financial crisis according to Reuters.
Among the changes, funds will have to switch to a floating share price instead of the current $1/share (hence the term breaking the buck). But the key part: "The SEC's rule will require prime money market funds to move from a stable $1 per share net asset value, to a floating NAV. It also will let fund boards lower redemption "gates" and [ impose - sic ] fees in times of market stress."(snip)
This is potentially significant for dancers and camgirls who have brokerage accounts ... because the vast majority of brokerages also use a money market account as their 'cash interface'. Under these new SEC regulations, in times of market stress, your broker can now potentially impose daily transfer limits and/or new fees if you attempt to sell off a stock or bond and quickly access the cash proceeds. The broker can execute the stock or bond sale, with the proceeds of that sale being immediately 'swept' into your linked money market account. However, if you attempt to remove money from that linked money market account, via say a transfer back to your local bank, your broker can now impose daily transaction limits and/or stiff new 'fees' for wanting to remove your own money at an 'inconvenient' time.



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