Specifically, the SEC will require prime money market funds sold to institutional investors to publish a floating net asset value and to restrict withdrawals through a system of gates and fees. These rules, while as yet untested, are designed to reduce the likelihood of runs on prime money market funds.
The third nonbank reform I want to highlight relates to securitization, which I mentioned earlier as one way in which parts of the financial system can become interconnected. An important rule, finalized late last year, will require the securitizers of some assets to retain at least 5 percent of the credit risk of the assets that collateralize the securities.