SEC Issues Proposed Rule regarding Tax-Exempt Money Market Funds

Comments are requested by the Securities and Exchange Commission on proposed rules regarding Tax-Exempt Money Market Funds. The lengthy proposal includes the following proposed changes to the current SEC Rule 2a-7. Proposed rule: Money Market Fund Reforms; Conformed to Federal Register version (

The proposed rule changes include:

  • Removes liquidity fee and redemption gate provisions in SEC Rule 2a-7
  • Requires institutional prime and tax-exempt funds to implement swing pricing policies and procedures
  • Proposes to increase the daily liquid asset (25%) and weekly asset (50%) minimum liquidity requirement
  • Amends certain reporting requirements

The Federal Liaison Center is seeking feedback for response to the proposed rule by April 8. Please contact Emily Brock with comments.