You Can't Always Get What You Want (Where You Want It): Cross-Border Effects of the US Money Market Fund Reform

Daniel Fricke; Stefan Greppmair; Karol Paludkiewicz

doi:10.2139/ssrn.4006406

journal article Jan 01, 2026

You Can't Always Get What You Want (Where You Want It): Cross-Border Effects of the US Money Market Fund Reform

Daniel Fricke Stefan Greppmair

Karol Paludkiewicz

SSRN Electronic Journal · Elsevier BV

View at Publisher Save 10.2139/ssrn.4006406

Abstract

This paper documents significant cross-border effects of the 2014 US money market fund (MMF) reform on euro area MMFs. As US-based prime funds became less money-like due to the reform, euro area-based prime funds received large inflows from foreign investors. These cross-border flows were motivated by the search for stable NAV instruments. Consistent with an easing of competitive pressure, euro area prime MMFs reduced their risk-taking. Lastly, the EU MMF regulation, a weaker regulatory intervention compared to the US reform, did not lead to a reversal of the documented cross-border flows.

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Published: Jan 01, 2026

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Cite This Article

Daniel Fricke, Stefan Greppmair, Karol Paludkiewicz (2026). You Can't Always Get What You Want (Where You Want It): Cross-Border Effects of the US Money Market Fund Reform. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4006406

You Can't Always Get What You Want (Where You Want It): Cross-Border Effects of the US Money Market Fund Reform

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