Large amount of lack of preparedness for pending Money Market Reform
MMR will affect the U.S. and global fund managers holding U.S. funds. The amendments of key rule 2a-7 will mostly affect floating NAV, liquidity fees and redemption gates, diversification, stress testing, and disclosure and reporting, all of which will have technological and strategic impact on money market funds.
The survey was conducted during a recent webinar hosted by SimCorp and KPMG, titled "Money Market Reform: The implications for your firm and the available technology solutions to help you comply."
The survey polled 100 individuals from 58 different firms across North America. Survey highlights:
85% claim to have limited or no understanding of the SEC's final ruling 2a-7
Only 23% are currently able to strike multiple NAVs during the day
Only 19% receive online alerts when daily liquidity is reduced to 10% or less
75% state that their organizations are not completely prepared for MMR to go into USA - effect. ■