The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

2a7 regulations

• A fund must keep at least 10% of its portfolio liquidity overnight and 30% within seven days. Treasury securities and certain other government securities qualify as liquid assets.

• The allowable bucket for illiquid securities is reduced to 5% of the portfolio from 10%.

• Investments in securities rated second tier are reduced to 3% of the portfolio from 5%. Exposure to a single issuer is reduced to 0.5% from 1%.

• The maximum weighted average maturity is reduced to 60 days from 90 days. The maximum WAL is 120 days.

• Collateral of repos qualified for look-through treatment must be cash items or government securities.

Source: Capital Advisors

see also: 
Money markets: Investors get rich from banks’ seven-day itch
Extendibles face extinction

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree