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samira76
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Joined: May 4th, 2018, 9:51 am

SEC content

May 5th, 2018, 6:30 am

Hi every one
I encounter a  "rule’s asset" and "bucketing"phrase in an article and I do not really know what that concept is. Can anyone refuse to understand this meaning?
actually in this text: " In particular, the SEC should re-examine the rule’s asset classification, or “bucketing”."
 
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ppauper
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Re: SEC content

May 5th, 2018, 6:48 am

in this context, "bucketing" means the same as "asset classification"

>> the rule's asset classification, or "bucketing."

I believe you're talking about the SEC's Investment Company Liquidity Risk Management Programs, for the purposes of which assets have to be classified into groups or "buckets."
Whosoever wrote the text you quoted is unhappy at the specific procedure for "bucketing" laid out in the program
 
samira76
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Re: SEC content

May 5th, 2018, 7:11 am

in this context, "bucketing" means the same as "asset classification"

>> the rule's asset classification, or "bucketing."

I believe you're talking about the SEC's Investment Company Liquidity Risk Management Programs, for the purposes of which assets have to be classified into groups or "buckets."
Whosoever wrote the text you quoted is unhappy at the specific procedure for "bucketing" laid out in the program
yes, exactly I'm talking about  SEC's Investment Company Liquidity Risk Management Programs, but what mean's "rule's asset"? Does it alone mean?
 
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ppauper
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Re: SEC content

May 5th, 2018, 9:59 am

 Think of "asset classification" as being one word and I'll add curly brackets (braces) to emphasize that
it's NOT "the rule's {asset}" which would be "the {asset} of the rule"
it IS "the rule's {asset classification}" which means "the {asset classification} of the rule"
 
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Cuchulainn
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Re: SEC content

May 5th, 2018, 11:06 am

Is it not so that contracts (should) come with an appendix containing unambiguous definitions of all terms used?
 
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ppauper
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Re: SEC content

May 5th, 2018, 11:31 am

In the US,  open-end funds are required by law to meet within seven days any investor requests to cash out.
there was a recent incident wherein Primary Reserve Fund, a money market firm with $2 trillion in funds, could not meet redemptions and the Fed chose to step in
.funds have to report the liquidity of their holdings, and for that purpose the assets they hold are divided into buckets, as defined in the rule.
large funds will have to limit hard-to-sell (i.e. illiquid) assets to 15 percent of holdings unless they notify the SEC and qualify for an exemption.
 
samira76
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Posts: 17
Joined: May 4th, 2018, 9:51 am

Re: SEC content

May 5th, 2018, 11:41 am

In the US,  open-end funds are required by law to meet within seven days any investor requests to cash out.
there was a recent incident wherein Primary Reserve Fund, a money market firm with $2 trillion in funds, could not meet redemptions and the Fed chose to step in
.funds have to report the liquidity of their holdings, and for that purpose the assets they hold are divided into buckets, as defined in the rule.
large funds will have to limit hard-to-sell (i.e. illiquid) assets to 15 percent of holdings unless they notify the SEC and qualify for an exemption.
That is, the amount of capital adequacy that funds need to store is 15% of its assets?
 
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ppauper
Posts: 11729
Joined: November 15th, 2001, 1:29 pm

Re: SEC content

May 5th, 2018, 1:26 pm

In the US,  open-end funds are required by law to meet within seven days any investor requests to cash out.
there was a recent incident wherein Primary Reserve Fund, a money market firm with $2 trillion in funds, could not meet redemptions and the Fed chose to step in
.funds have to report the liquidity of their holdings, and for that purpose the assets they hold are divided into buckets, as defined in the rule.
large funds will have to limit hard-to-sell (i.e. illiquid) assets to 15 percent of holdings unless they notify the SEC and qualify for an exemption.
That is, the amount of capital adequacy that funds need to store is 15% of its assets?
no.
if you separate the holdings of the fund into "liquid" and "illiquid" assets, no more than 15% can be in "illiquid" assets, leaving at least 85% in "liquid" assets
 
samira76
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Re: SEC content

May 5th, 2018, 6:14 pm

how for market risk?I mean for mutual founds(open-end founds) how control market risk? and how built portfolio who has at least risks?