Wednesday, April 14, 2010

SEC to clamp down on manipulation by “large traders”

Today, April 14 the SEC proposed the latest in an ongoing effort to promote fairness and efficiency in the markets. Other rules proposed recently to increase fairness and efficiency include a proposed ban on marketable flash orders, a proposal to bring greater transparency to dark pools of liquidity, and a proposal to prohibit unfiltered access to markets.

“This rule is designed to strengthen our oversight of the markets and protect investors in the process,” said SEC Chairman Mary L. Schapiro. “It would give us prompt access to trading information from large traders so we can better analyze the data and investigate potentially illegal trading activity.”

Under the SEC’s proposal, traders who engage in substantial levels of trading activity would be required to identify themselves to the SEC through a filing with the Commission. A “large trader” would be generally defined as a firm or individual whose transactions in exchange-listed securities equal or exceed two million shares or $20 million during any calendar day, or 20 million shares or $200 million during any calendar month.

For more information: U.S. Security and Exchange Commission

Posted By Valerie Garner

Categories: Finance

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