Interactive Data, a leading provider of independent evaluated pricing and reference data services, today announced that the firm is well-positioned to help its money market fund clients comply with today's SEC final ruling requiring floating net asset values ("NAVs") for institutional prime money market funds and permitting the use of redemption gates and liquidity fees.
A floating NAV requirement presents new challenges for the money market fund industry, which has attracted more than $2.9 trillion in total assets under management due in part to the combination of principal stability, liquidity, and short-term yields offered by these funds. This ruling will likely require substantial changes to the operational workflows relied upon by institutional prime money market funds and the service providers that support them in order to achieve full compliance following a two-year transition period. Interactive Data is well-positioned to leverage recent and ongoing investment in its technical infrastructure and related systems to provide prime institutional money market funds with high-quality evaluated pricing data at multiple times during the trading day, which would help prime institutional money market funds preserve the benefit of offering same-day settlement.
"Interactive Data has made notable progress in implementing continuous evaluated pricing processes," said Andrew Hausman, President, Pricing & Reference Data for Interactive Data. "We plan to work collaboratively with our money market fund clients and their custodian and administration service providers to determine how best to address their potential requirements such as multiple NAVs per day."
Interactive Data currently provides evaluated pricing to the world's top money managers. The Company has continued to refine and evolve its evaluated pricing processes, models and workflows while also taking important steps to further enhance the quality, breadth and depth of its evaluated pricing services and related offerings. Providing institutional prime money market fund clients with the data they need to calculate floating NAVs is another tangible example of Interactive Data's commitment to helping the money market fund industry thrive while adapting to new rules and evolving industry requirements.
Interactive Data submitted a comment letter on the Pththe Proposed Rule on Money Market Fund Reform on September 17, 2013. Access the Interactive Data comment letter here: http://www.sec.gov/comments/s7-03-13/s70313-168.pdf