Swing pricing has been used for more than a decade in European mutual funds, where it has been shown to slow redemptions in stress events. 5 In the United States, mutual funds have not adopted swing pricing, in part because of technical obstacles.
See Dunhong Jin, Marcin Kacperczyk, Bige Kahraman, and Felix Suntheim (2019), “Swing Pricing and Fragility in Open-Ended Mutual Funds,” IMF Working Paper 19/227 (Washington: International Monetary Fund, November), https://www.imf.org/en/Publications/WP/Issues/2019/11/01/Swing-Pricing-and-Fragility-in-Open-endMutual-Funds-48729. 5  -5Treasury Market Functioning The COVID shock also revealed vulnerabilities in the market for U.S. Treasury securities.