Bloomberg writes "​SEC Money-​Fund Rule Said to Make Riskier Funds Float Share Value", saying, "U.​S. securities regulators have narrowed the target of new rules for money-​market funds, according to a person familiar with the matter, limiting changes to a smaller set of funds than many executives anticipated. The Securities and Exchange Commission proposal would impose a floating-​share value only on funds that buy corporate debt and cater to institutional clients, said the person, who asked not to be identified because the plan isn'​t public.... A proposal limiting rule changes to so-​called prime institutional funds would be a victory for companies, including Vanguard Group Inc. and Charles Schwab Corp., that called for exempting funds that invest only in government securities and those that serve only retail investors. Money funds are allowed to keep a stable value of $​1 a share and are used as cash-​equivalent accounts by individuals, institutional investors and corporations. Adopting a floating net-​asset value is intended to make investors less sensitive to variations in the share price, thus limiting redemptions during times of stress. Institutional prime funds account for 35 percent of money- fund assets, which amount to $​2.​58 trillion, according to the Washington-​based Investment Company Institute, a trade group for the mutual-​fund industry."

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