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The European Union unveiled a series of new stricter regulation proposals for shadow banking money-market funds, financial mechanisms which supply short term debt to governments and banks.
The new rules would oblige money-market funds to compile daily assessments of their assets or “build up capital buffers worth at least 3 per cent of the assets they manage to absorb potential losses,” continues the Wall Street Journal
The plan would aim to halt the spread of any financial “contagion” should money markets stop lending and would make trading conditions more restrictive than in the US.
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