PALM DESERT, Calif. – The second set of reforms of the money market mutual fund industry now being considered will be an “interesting test case” of regulators’ ability to conduct effective analysis of the costs and benefits of rules they institute, according to a former director of the Division of Trading and Markets at the Securities and Exchange Commission.

The push by the Financial Stability Oversight Council and the Securities and Exchange Commission to create a new round of rules that govern the money fund industry will demonstrate the regulators ability or lack thereof to carefully consider the impacts of the rules they institute, said Erik Sirri, a professor at Babson College near Boston who served as director of the trading and markets unit at the SEC from 2006 to 2009.

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