BlackRock: fix commercial paper before MMF meddling

Iosco official agrees that CP market needs to be considered alongside MMF reform

Jerry Goldberg

A senior figure at asset management giant BlackRock has urged regulators to focus on reforming the US commercial paper market before proposing new regulations for under-fire prime money market funds (MMFs).

Thomas Callahan, head of the global cash management business at the $8 trillion asset manager, said that the CP market “freezes” in times of stress, and therefore central banks will need to keep intervening in future crises unless the market structure is reformed.

“Regulators can do