Reverse distribution mechanism

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Revision as of 00:32, 27 November 2020 by imported>Doug Williamson (Add link.)
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Money market funds - regulation.

(RDM).

RDM is a practice used by stable-priced money market funds to deal with negative yield, where units of shares are cancelled.


The European Commission has sent a letter to ESMA stating that it considers that RDM is not compatible with the MMF Regulation.

The Commission is requesting ESMA to develop guidance on the issue in order to ensure supervisory convergence.


See also