SEC Issues Exemptions from the Large Trader Reporting Rule

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On April 20, 2012, the SEC issued an order temporarily exempting broker-dealers from the recordkeeping, reporting and monitoring requirements of new Rule 13h-1 under the Securities Exchange Act of 1934 (Rule 13h-1 or the Large Trader Reporting Rule) and granting a permanent exemption for certain securities transactions.

The Large Trader Reporting Rule, adopted by the SEC in July 2011, requires entities that meet the definition of a “large trader” to register with the SEC on Form 13H, and for broker-dealers to meet recordkeeping, reporting and monitoring obligations with respect to large traders who execute trades through them.

To read this FS Regulatory Brief, please click here.

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• The SEC’s New Large Trader Reporting Requirements Place New Regulatory Obligations on Both Asset Managers and Broker-Dealers - November 2011