SEC Large Trader Reporting Plan Aims to Halt Illegal Activity
Large traders would be issued a unique identification number so that their broker-dealers could maintain transaction records in an effort to stop illegal trading activity under a new SEC proposal.
The SEC voted yesterday to create a large trader reporting system that would enhance its ability to identify large market participants, collect information on their trades, and analyze their trading activity. They would be required to identify themselves to the commission, which would then assign each trader an identification number. Large traders would provide this number to their broker-dealers, who would be required to maintain transaction records for each large trader and report that information to the SEC upon request.
A large trader would be generally defined as a firm or individual whose transactions in exchange-listed securities equal or exceed two million shares or $20 million during any calendar day, or 20 million shares or $200 million during any calendar month, according to the SEC.
Public comments on the proposal should be received by the SEC within 60 days after its publication in the Federal Register.