WASHINGTON -- The SEC approved a long-awaited set of rules on Wednesday aimed at shoring up money-market mutual funds, opting for a dual approach that seeks to align trading prices with underlying market values and guard against destabilizing runs.

In a 3-to-2 vote, the commission pushed forward a rule that will require institutional prime funds to allow net asset value to float to its market value, rather than holding pat at $1. In addition to the floating NAV, the commission adopted a so-called fees and gates proposal, authorizing fund boards to impose fees on investors seeking to redeem their shares in times of stress, and then the ability to temporarily close off sales to prevent a run.

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