Dec 30 20 Last week, we covered the "Report of the President's Working Group on Financial Markets" and new "Overview of Recent Events and Potential Reform Options for Money Market Funds." (See our Dec. 24 News, "PWG Paper Discusses Potential Reform Options for Money Market Funds.") Today, we highlight more, in particular the discussion of potential money market reform options. The PWG writes, "An assessment of the effectiveness of reform options in achieving these goals should take into account: (a) how each option would address MMF structural vulnerabilities and contribute to the overarching goals; (b) the effect of each option on short-term funding markets and the MMF sector more broadly, including through its effects on the resilience, functioning, and stability of short-term funding markets, as well as whether the reform option would trigger the growth of existing investment strategies and products, or the development of new strategies and products, that could either exacerbate or mitigate market vulnerabilities; and (c) potential drawbacks, limitations, or challenges specific to each reform option. The reform options considered in this report seek to achieve the goals in different ways. For example, some are intended to address the liquidity-related stresses that were evident in March 2020, while others also touch on potential credit-related concerns. This menu of options reflects the possibility that future financial stress events may affect the liquidity of short-term investments, their credit quality, or both."