Securities And Exchange Commission Adopts Large Trader Reporting Rule

On July 26, 2011, the Securities and Exchange Commission (the "Commission") adopted Rule 13h‑1 under the Securities Exchange Act of 1934 to require certain "large traders" to identify themselves to the Commission using new Form 13H. The rule further requires large traders to identify themselves as such to the broker-dealers that execute their transactions. Finally, the rule requires the broker-dealers for large traders to maintain records of those traders' transactions and to provide those records to the Commission upon request.

The rule will become effective on October 3, 2011, and large traders will have to begin reporting on Form 13H on or after December 1, 2011. Registered broker-dealers have until April 30, 2012 to comply with their reporting and monitoring obligations under the rule.