•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

By Beverly Chandler, Opalesque London:

July 26th saw the SEC voting unanimously to adopt new rules to implement a system that enables the SEC to monitor large traders’ trading activity through a requirement that broker-dealers record large traders’ activity and report it to the SEC upon its request.

In a report from K&L Gates written by Mark D Perlow and Yusef Alexandrine, the authors explain that a large trader is defined as "any person that directly or indirectly, including through other persons controlled by such person, exercises investment discretion over one or more accounts and effects transactions for the purchase or sale of any NMS security for or on behalf of such accounts, in an aggregate amount equal to or greater than: two million shares or shares with a fair market value of $20 million during a calendar day; or twenty million shares or shares with a fair market value of $200 million during a calendar month."

Perlow and Alexandrine’s report further explains that: "In addition, a person may voluntarily register with the SEC as a large trader without regard to current trading volume; this provision will allow a person to register as it nears the applicable trading activity threshold, rather than having to monitor its trading activity levels. Voluntary registrants will be subject to all of the reporting obligations of a large trader. The SEC stated that these thresholds are designed to monitor activity of traders that effect transactions equal to or gre......................

To view our full article Click here