SEC Adopts Large Trader Reporting Regime
SEC Release No. 34-64976
July 27, 2011
The SEC adopted new Exchange Act Rule 13h-1 and Form 13H under the Exchange Act to require “large traders” (defined as those whose transactions in NMS securities is (i) equal to or greater than 2 million shares or $20 million on any day or (ii) 20 million shares or $200 million dollars during any calendar month) to identify itself to the SEC and make certain disclosures. Such large traders must provide an identification number to the broker-dealers through whom they trade, who must then maintain particular records of any transactions effected for the large traders. Information reported on large traders will be available upon request to the SEC through the Electronic Blue Sheets systems currently used by broker-dealers. Finally, broker-dealers must also perform monitoring of customer accounts for activity that could trigger the large trader identification requirements.
The Commission noted that aspects of this rule coincide with its other outstanding proposal to establish a consolidated audit trail; however the SEC did not state whether or not it expects to act on that proposal.
Please contact any of the following Cadwalader attorneys if you have any questions about this item.
Steven Lofchie; [email protected]
Jeffrey Robins; [email protected]
Maurine Bartlett; [email protected]
Glen Barrentine; [email protected]
Cross References
SEC Press Release No. 2011-154
SEC Release No. 34-61908
Exchange Act § 13(h)
Exchange Act Rule 13h-1, Form 13H
SEC Release No. 34-62174 (proposal to establish a consolidated audit trail)