Attached below is a Client Alert that discusses the large trader reporting system that is being implemented through SEC Rule 13h-1 under the Securities Exchange Act of 1934. In summary, the rule:
- Requires persons who directly or indirectly exercise investment discretion and purchase or sell more than a specified amount of U.S.-listed stocks and options through a registered broker-dealer to register with the SEC
- Imposes new recordkeeping, reporting and monitoring requirements on broker-dealers
The rule was effective October 3, 2011. Large traders must register with the SEC by December 1, 2011, and registered broker-dealers must comply with the various requirements of the rule by April 30, 2012.
Download the .PDF to read the full Client Alert.
Client Alert 2011-241