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NEW YORK, March 12 (Reuters) - Reich & Tang said on Thursday it will exit the U.S. money market fund business, as the $2.7 trillion industry has been grappling with tighter regulations stemming from the global financial crisis.
The New York-based firm said in a statement it plans to liquidate its money market funds, worth $9.5 billion, by July 31.
Reich & Tang is an affiliate of Natixis Global Asset Management.
“In shedding the investment management business, the firm will focus on growing its successful FDIC-insured sweep programs,” Reich & Tang’s president and chief executive, Michael Lydon, said in the statement.
Large money fund operators Fidelity and Federated Investors have recently made changes to some of their funds to meet the requirements from the Securities and Exchange Commission that go into effect in October 2016.
Reporting by Richard Leong; Editing by Chris Reese and Leslie Adler