The Securities and Exchange Commission today published a request for public comment on potential reform measures to improve the resilience of money market funds as highlighted in a report of the President's Working Group on Financial Markets issued in December 2020.

The report noted that certain short-term funding markets experienced stress in March 2020 amid economic concerns related to the onset of the COVID-19 pandemic.

“Money market funds play a significant role in our short-term funding markets, and they are utilized by both large institutions and individual retail investors,” said SEC Acting Chair Allison Herren Lee. “Comments received will assist the SEC and other relevant financial regulators in further analysis of potential reforms.”

The report also discusses prior money market fund reforms, the evolution of different types of money market funds since the 2008 financial crisis, and events in certain short-term funding markets in March 2020.

The report concludes that more work is needed to reduce the risk that structural vulnerabilities in prime and tax-exempt money market funds will lead to or exacerbate stresses in short-term funding markets. The report also discusses various reform measures that policymakers could consider.

The SEC is requesting public comment on the report, including the effectiveness of the previously-enacted money market fund reforms and of implementing the potential policy measures described in the report. Commenters also are invited to discuss other topics that are relevant to potential money market fund reforms, including other approaches to reform. The SEC encourages commenters to submit empirical data and other information in support of their comments.

The public comment period will remain open for 60 days following publication of the comment request in the Federal Register.

• Submit comments