• SEC Proposes Large Trader Reporting System
  • May 17, 2010 | Author: Charles S. Gittleman
  • Law Firm: Shearman & Sterling LLP - New York Office
  • On April 14, 2010, the Securities and Exchange Commission (“SEC”) published a release seeking comment on a proposed new Rule 13h-1 and Form 13H pursuant to Section 13(h) the Securities Exchange Act of 1934, as amended, to establish a large trading reporting system (“Proposed Rule”). Under the Proposed Rule, large traders (“Large Traders”) would be required to identify themselves to the SEC and to be issued a Large Trader Identification Number (“LTID”). A Large Trader would also be required to provide to a registered broker-dealer with which it does business its LTID and the registered broker-dealers would then be required to maintain certain records relating to the Large Trader’s trades.