US SEC to vote on ‘swing pricing,’ private investment reporting

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The five-member U.S. Securities and Exchange Commission will vote on a 2021 proposal to boost the resiliency of money market funds, which required a taxpayer bailout at the start of the coronavirus pandemic, by imposing a “swing pricing” rule to discourage hasty withdrawals in times of stress. The proposal has drawn strong industry objections.

The Commission on July 12 will also vote on whether to require greater disclosures from the private asset managers to better detect the buildup of financial risk, according to an SEC announcement. The agency had been due to decide on the proposal in March but delayed the vote, saying commissioners felt it still needed work.

The SEC will also consider whether to make proposals on the frequency with which broker-dealers and swap dealers calculate reserve deposit requirements. If one of the measures is adopted, the SEC could require broker-dealers to calculate reserve deposit requirements on a daily rather than weekly basis.