The FOMC raised interest rates for the third time since the 2008 financial crisis, which confirmed the Fed’s positive outlook on the economy and increased the current target interest rate range to between 75 and 100 bps. Fed Chair Janet Yellen cited growing confidence in the economy and markets generally reacted positively to the rate hike.
Significant progress has been made in recently on the European Money Market Funds Regulation (MMFR) file.
Prior to Slovakia taking over the Presidency of the Council in July, the Dutch were able to finalise the Council’s text
in order to move the file to trilogue negotiation with the Parliament and Commission.
Basel III—a set of comprehensive reform measures aimed at strengthening the regulation, supervision, and risk management of the banking sector—is having a profound impact on the way banks view capital and deposits from investors. The new regulations are being implemented gradually by 2019, but the effects of the provisions are already being felt in the market as banks have started to adapt their behavior in line with the new rules.
On July 23, 2014, the Securities and Exchange Commission (SEC) voted to amend Rule 2a-7, which governs money market funds. The majority of these amendments, except for certain disclosure enhancements, will not take effect for two years.