Reverse distribution mechanism

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

Money market funds - regulation.


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