(10/24/16)

ICD RELEASES ESSENTIAL MMF REFORM SOLUTIONS FOR CORPORATIONS

  • ICD’s new release of Transparency Plus 6.0 enables users to compare and contrast historical Net Asset Value Pricing, Asset Flows and Liquidity of institutional prime money market funds
  • ICD Portal has added 7-day liquidity minimums to its compliance feature set, providing users with trade blocks and alerts on MMFs with liquidity below the user’s liquidity tolerance
  • ICD Portal’s new Gain/Loss Report enables corporations to efficiently take advantage of the Simplified Tax Accounting Method for institutional prime money market funds

SAN FRANCISCO, October 24, 2016/PRNewswire/ — Institutional Cash Distributors (ICD) today announced the release of Transparency Plus® 6.0 providing several key on-line and reporting enhancements that are necessary for corporate treasury practitioners to effectively manage portfolios that include institutional prime money market funds.

The MMF Reform enhancement release is the latest iteration of Transparency Plus, which in 2010 was the first risk management exposure analytics application for institutional cash investments.  New SEC 2a-7 rules, effective October 14, 2016, require institutional prime money market funds to maintain a variable, or floating net asset value to the fourth decimal place (e.g., 1.0000), where they previously were rounded to the second decimal place (e.g., $1.00); and providing institutional prime money market fund boards with the ability to impose fees of up to 2% and gates of up to ten days if weekly liquidity falls below 30% and the board feels it is in the best interest of the fund’s shareholders.

ICD Senior Vice President & Head of Global Trading, Sebastian Ramos said, “With the new SEC 2a-7 Rules in place, Institutional Prime MMF investors should look to maintain diversified portfolios and use the latest compliance, reporting and monitoring tools to ensure portfolios meet their corporation’s investment objectives and risk tolerance.”

ICD Portal’s Liquidity Compliance Rules will prevent or limit trading in MMFs where liquidity is below client-established levels. Alerts are also sent to clients with positions in MMFs that fall below client-established liquidity minimums. Transparency Plus’s NFL Report compares Net Asset Value Pricing, Net Asset Flow and Liquidity for MMFs in client actual and hypothetical portfolios, enabling fund comparisons on these important metrics. ICD Portal generates Gain/Loss reports that simplify corporate tax and financial reporting for institutional prime money market funds using the IRS-approved Simplified Tax Accounting Method.  Gain/Loss report ranges can be customized by month, quarter, year or any specified time period.

“Institutional prime money market funds will continue to be an important part of corporate short-term portfolios, especially when the spreads widen. This release is another example of ICD’s commitment to provide superior products and extraordinary client service,” said ICD Chairman, Tom Newton.

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