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US prime fund swing pricing proposal sparks industry alarm

Some fear SEC rule would repel investors; high liquidity requirements could make funds uneconomic

Swinging dollar

US Securities and Exchange Commission (SEC) proposals to reform prime money market funds (MMFs) would kill the product, industry sources say, especially because of the inclusion of swing pricing.

“If that’s introduced, investors will just not want to be in those funds or fund managers will just not be able to operate them,” says Greg Fayvilevich, head of US funds and asset management group at Fitch Ratings. “It’s a moot point almost whether it [swing pricing] will or won’t work; if no investors

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