SEC Approves Split Rule on Money Market Funds

The SEC adopted new rules affecting the $2.6 trillion money market industry late in July. The purpose of the rules is to alert investors about the risk of investments that were thought to be guaranteed, and they impose floating net asset value like other mutual funds rather than a fixed $1 value. In MarketBeat, Fred Barstein notes that the rules will apply only to funds institutions hold, and also discusses more about what the rules mean.