August 21, 1989
TO: BOARD OF GOVERNORS NO. 50-89
MONEY MARKET FUND CHIEF EXECUTIVE OFFICERS NO. 6-89
SEC RULES MEMBERS NO. 44-89
RE: NASD CHANGES METHOD FOR CALCULATING YIELDS FOR MONEY
MARKET FUNDS
__________________________________________________________
The Board of Governors of the NASD has decided to change
its method for calculating yields on money market funds parti-
cipating in its mutual fund quotation service. Previously, the
NASD had included capital gains and losses in its yield calcu-
lation. The revised method would adopt the SEC formula, which
does not take into account capital gains or losses. The target
date for implementing the new yield formula is November 1, 1989.
A copy of the NASD notice to participating money market
funds is attached.
Craig S. Tyle
Assistant General Counsel
Attachment