IMA welcomes Europe-wide money market definitions

The Investment Management Association has welcomed new Europe-wide money market fund definitions from the European Fund and Asset Management Association (EFAMA).

  On 9 July EFAMA and the Institutional Money Market Funds Association (IMMFA) published a report on the classification and definition of money market funds, which provides clear-cut rules on what the “money market fund” label should include.   The classification rests on a revised, more robust single category of money market funds composed of two types – short-term and regular – defined in a way that limits the main risks to which money market funds are exposed, ie interest rate risk, credit/credit spread risk and liquidity risk.