SEC: New rules to help ID large traders

The Securities and Exchange Commission approved new reporting requirements for large traders so it can better identify major market participants and analyze their trades in the event of another flash crash such the one that occurred on May 6, 2010, when $900 billion in stock market value was briefly lost. Large traders, such as hedge funds and banks, will be required to register with the SEC using a new form. Their broker-dealers will be responsible for keeping track of the large traders’ transaction records and for reporting the data to the SEC on request. Large traders are defined as those with transactions in exchange-listed securities of at least 2 million shares or $20 million during a day, or 20 million shares or $200 million in a month. Read the rule here.

Related Topics: Regulatory Moves