SEC Proposes Large Trader Reporting System

May 19, 2010
The U.S. Securities and Exchange Commission’s recently proposed Rule 13h-1 would establish a large trader reporting system to assist in gathering data to enhance the SEC’s ability to detect and deter fraudulent and manipulative activity, analyse significant market events for regulatory purposes and more quickly reconstruct an accurate market history, especially in periods of market volatility such as the recent so-called “flash crash” on 6 May 2010. The update examines the proposed rule, which would require any non-U.S. person or entity meeting the definition of a large trader to comply with the rule requirements, even if the large trader is only acting for non-U.S. accounts, since it does not distinguish on the basis of location.