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US SEC mulls tough rules for money market funds

WASHINGTON, Jan 26 (Reuters) - U.S. regulators are mulling new rules to boost money market funds’ liquidity and ensure that investors can redeem their shares after the collapse of the Reserve Primary Fund triggered a run on the $3.24 trillion market, two people familiar with the regulators’ plans said on Tuesday.

The Securities and Exchange Commission is considering requiring that money market funds hold a minimum of 10 percent of their assets in liquid securities, the sources said. The sources requested anonymity because the plan is in flux and has not been made public. (Reporting by Rachelle Younglai and Aaron Pressman)

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