The odds just got much better that regulators will impose a floating NAV on money market funds.

Luis Aguilar, the SEC commissioner whose opposition was crucial in shooting down Mary Schapiro's money fund reform proposals this summer, said in interviews with the Wall Street Journal and Reuters that he would now support a floating NAV.

Aguilar, a Democrat, finished off Schapiro's push for reform by joining the two Republican commissioners in opposing the plan. Later, he and another commissioner asked the agency for further research, which arrived this week.

Now, research in hand, Aguilar told Reuters that he's "in a much better position to vote on a proposal."

"It was important information that was lacking in the earlier draft," he said.

But there's one further roadblock for reform: once Schapiro steps down and commissioner Elisse Walter moves up to the chairman's role, the commission will be split two-two between reform-pushing Democrats and Republicans. So whether reform goes through in the SEC depends on who's appointed to fill the open seat.  

Edited by: Chris Cumming


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