Can short term money market funds or money market funds obtain direct or indirect exposure to equities?
Question: Can short-term money market funds or money market funds obtain direct or indirect exposure to equities? Answer: No. According to paragraph 11 of Box 2 and paragraph 1 of Box 3 of the CESR guidelines, short- term money market funds and money market funds cannot take direct or indirect exposure to equities.
Is a Vanguard Federal Money Market Fund liquid?
The Vanguard Cash Reserves Federal Money Market Fund (VMMRX) is a taxable, conservative investment option designed for the retail investor. The fund is primarily invested in highly liquid securities with short-term maturities like U.S. Treasury bills and cash.
Can I withdraw a large amount of cash?
There is no cash withdrawal limit and you can withdrawal as much money as you need from your bank account at any time, but there are some regulations in place for amounts over $10,000. For larger withdrawals, you must prove your identity and show that the cash is for a legal purpose.
What was the purpose of Rule 2a-7?
Rule 2a-7 The Securities And Exchange Commission (SEC) recognized the threat to the financial system that would be caused by a systemic collapse of money market funds and responded with Rule 2a-7.
How are money market funds get safer with Rule 2a-7?
Funds must undergo stress tests as well under Rule 2a-7 to verify their ability to maintain a stable NAV under adverse conditions. They are required to track and disclose the NAV based on the market value of underlying holdings and to release that information on a 60-day delay after the end of the reporting period.
What does business day mean in CFR § 270.5b-3?
(4) Business day means any day, other than Saturday, Sunday, or any customary business holiday. (5) Collateralized fully has the same meaning as defined in § 270.5b-3 (c) (1) except that § 270.5b-3 (c) (1) (iv) (C) shall not apply. (6) Conditional demand feature means a demand feature that is not an unconditional demand feature.
What does acquisition mean in the CFR § 270?
(1) Acquisition (or acquire) means any purchase or subsequent rollover (but does not include the failure to exercise a demand feature).