Money Market Reform

Money Market Reform involves updates to regulations governing short-term borrowing markets, especially focusing on instruments like prime money market funds and repurchase agreements. The goal is to enhance stability, resilience, and transparency in these markets, reducing risks of runs or failures during financial stress. Reforms may include setting minimum capital or liquidity standards, implementing fees or gates during stress periods, and requiring more detailed disclosures. These changes aim to ensure that money markets can function smoothly, supporting liquidity for businesses and the economy while protecting investors and preventing systemic shocks.