Draghi wants variable NAV for all European MMFs

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Money market funds (MMFs) could be forced to switch to a variable net asset value format if recommendations from the European Systemic Risk Board (ESRB), released yesterday, are adopted by the European Commission.

MMFs seek to earn interest for their shareholders while maintaining a net asset value of $1 per share, but the majority - referred to by the ESRB as constant net asset value funds (CNAVs) - do not reveal any fluctuations in market value around that value.

The ESRB, chaired by ECB

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