Large Trader

Large Trader

What is a great trader?

A large trader is an investor or organization whose transactions are equal to or greater than certain amounts specified by the Securities And Exchange Commission (SEC). A large trader is defined by the SEC as “a person whose transactions in NMS securities equal or exceed two million shares or $ 20 million in a calendar day, or 20 million shares or $ 200 million during a calendar month “. Any market player who is, by definition, a large merchant must identify themselves to the SEC and submit Form 13H, “Registration of Large Merchant: Information Required from Large Merchants Under Article 13 (h) of the Securities Exchange Act of 1934 and rules derived therefrom “. “

Large trader explained

Since 2020, the SEC has required that all traders who perform a substantial amount of trading activity, measured in volume or market value, identify themselves to the SEC by registering with the SEC via Form 13H. The SEC assigns an identification number to each major transaction, collects information and analyzes the trading activity of each large enterprise. In addition, certain registered brokers are required to comply with SEC rules relating to the keeping of records, reporting and supervision of large traders who transact through the broker.

The SEC has launched major trader reports in response to the development of trading technology that allows trading in large volumes and fast execution speeds. In addition, the SEC cited the growing importance of large traders and high frequency traders (HFT) in the markets and the need to improve access to their trading activities. Reports from large traders are intended to assist the SEC in identifying individuals engaged in significant market activity and in analyzing the impact of their trading activity.

Large merchants must submit an “initial deposit” using Form 13H and an “annual deposit” for each applicable calendar year. A large trader who has not carried out the identified quantity of trading activity measured in volume or in market value may file a request for inactive status and may remain inactive and exempt from the deposit requirements until the level of trading of large traders be restored.

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