Experts from Confluence, the global investment management industry’s leading provider of automated data management solutions, are available to discuss the significant impact of new Money Market Fund Reform reporting requirements on fund administrators and their back-office operations.
The SEC’s Money Market Fund Reform Rule is designed to make money market funds more resilient to certain short-term risks, while providing greater protection for investors. New mandates include:
• Monthly holdings reporting to the SEC via EDGAR, within five business days of month end.
• Disclosure of holdings to a public website, beginning October 7, 2010.
• Use of an XML-based Form N-MFP to detail portfolio holdings. This will become a requirement as of December 7, 2010, with a trial period available after October 7, 2010.
• Inclusion of money market fund shadow NAV and other supplemental data currently not provided in the Schedule of Investments.
“We applaud the SEC’s efforts to protect money market fund investors and the public interest by fostering accountability and transparency,†said Kirk Botula, Executive Vice President and Chief Operating Officer, Confluence. “Fund administrators must quickly examine and scale up their reporting processes to meet these new requirements, which involve shorter reporting cycles.â€
“This rule is a significant move toward industry adoption of structured content (XML) for regulatory reporting,†said Scott Powell, Senior Market Analyst, Confluence. “New source content tagging technology will enable fund administrators to comply with the requirements of filing the XML-based Form N-MFP, while eliminating the high costs and risk of error associated with manual XML data tagging processes.â€
Confluence plans to support Money Market Fund Reform reporting through an expansion of its Unity® Holdings software, a solution that automates every phase of holdings report generation. The company will also conduct a free, educational webinar in the coming weeks for fund administrators that will address how to best comply with the new SEC rules.
The SEC’s Money Market Fund Reform Rule is designed to make money market funds more resilient to certain short-term risks, while providing greater protection for investors. New mandates include:
• Monthly holdings reporting to the SEC via EDGAR, within five business days of month end.
• Disclosure of holdings to a public website, beginning October 7, 2010.
• Use of an XML-based Form N-MFP to detail portfolio holdings. This will become a requirement as of December 7, 2010, with a trial period available after October 7, 2010.
• Inclusion of money market fund shadow NAV and other supplemental data currently not provided in the Schedule of Investments.
“We applaud the SEC’s efforts to protect money market fund investors and the public interest by fostering accountability and transparency,†said Kirk Botula, Executive Vice President and Chief Operating Officer, Confluence. “Fund administrators must quickly examine and scale up their reporting processes to meet these new requirements, which involve shorter reporting cycles.â€
“This rule is a significant move toward industry adoption of structured content (XML) for regulatory reporting,†said Scott Powell, Senior Market Analyst, Confluence. “New source content tagging technology will enable fund administrators to comply with the requirements of filing the XML-based Form N-MFP, while eliminating the high costs and risk of error associated with manual XML data tagging processes.â€
Confluence plans to support Money Market Fund Reform reporting through an expansion of its Unity® Holdings software, a solution that automates every phase of holdings report generation. The company will also conduct a free, educational webinar in the coming weeks for fund administrators that will address how to best comply with the new SEC rules.
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