Recently, the Securities and Exchange Commission (SEC) adopted new Rule 13h-1 (the Rule) and Form 13H under existing Section 13(h) of the Securities Exchange Act of 1934 (the Exchange Act). The Rule will require large traders (defined below) to register with the SEC and identify themselves as such to broker-dealers executing their transactions. Additionally, the Rule will require registered broker-dealers to maintain transaction records for each large trader and report those transactions to the SEC upon request. The Rule was adopted pursuant to the SEC’s authority under the Market Reform Act of 1990.

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Source: Investment Management Alert
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