Redemption gate

Money market funds.

A closed period which can be imposed by the board of a money market fund under times of market stress, in order to reduce the risk of a run on the fund.

No redemptions would be allowed during the period of the redemption gate.

Also known as a liquidity gate.

See also

• Liquidity buffer
• Liquidity fee
• Money market fund
• Redemption
• Run
• Variable net asset value