In September 2015, the US Securities and Exchange Commission (SEC) proposed new liquidity rules that require open-ended funds to report the liquidity of their positions to the regulator. In the early drafts of the rules, the SEC proposed that funds classify the liquidity of their positions in "buckets" based on days to liquidation. It was an approach that aimed to build on how ‘40 Act mutual funds had thought of liquidity risk for decades – in terms of time.
Up to a point, that makes sense for f
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