U.S. securities regulators, under pressure to address risks posed by the $2.6 trillion money market/mutual fund industry, are considering a scaled-back approach that would tighten rules for about half of the sector, which is seen as most vulnerable to investor runs, the Wall Street Journal reported today. The approach, one of several being contemplated at the Securities and Exchange Commission, would require only the riskiest funds to abandon their fixed $1 share price and would allow shares to float in value like other mutual funds. Such a move would be a win for the industry, which balked at last year's effort to require money managers to float all of their funds' share prices or have the funds post bank-like capital. The SEC abandoned that approach after then-SEC Chairman Mary Schapiro was unable to secure enough votes.
