1. The assets of an MMF shall be valued on at least a daily basis.
2. The assets of an MMF shall be valued by using mark-to-market whenever possible.
3. When using markto-market:
(a) the asset of an MMF shall be valued at the more prudent side of bid and offer unless the asset can be closed out at mid-market;
(b) only good quality market data shall be used; such data shall be assessed on the basis of all of the following factors:
(i) the number and quality of the counterparties;
(ii) the volume and turnover in the market of the asset of the MMF;
(iii) the issue size and the portion of the issue that the MMF plans to buy or sell.
4. Where use of mark-to-market is not possible or the market data is not of sufficient quality, an asset of an MMF shall be valued conservatively by using mark-to-model.
The model shall accurately estimate the intrinsic value of the asset of an MMF, based on all of the following up-to-date key factors:
(a) the volume and turnover in the market of that asset;
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