The SEC adopted new large trader reporting requirements, that includes tagging firms in order to follow their moves in the markets.  As written, new SEC Rule 13h-1 requires large traders to identify themselves to the SEC, which will then assign each trader a unique identification number.  Large traders will provide this number to their broker-dealers, who will be required to maintain transaction records for each large trader and report that information to the SEC upon request.

SEC Chairman Mary Schapiro cited the May 6 Flash Crash as 'proof positive' that the Commission needs the ability to quickly and accurately analyze market events.  She added, “This new rule will enable us to promptly and efficiently identify significant market participants and collect data on their trading activity so that we can reconstruct market events, conduct investigations, and bring enforcement actions as appropriate.”

The new rule has two primary components:  (i) it requires large traders to register with the SEC using new Form 13H;  and, (ii) it imposes recordkeeping, reporting, and limited monitoring requirements on certain registered broker-dealers through whom large traders execute their transactions.

The new rule goes into effect 60 days after publication in the Federal Register.  

For further details, go to:   [SEC PR 11-154, 7/16/11]   and   [ SEC Final Rule Release 34-64976, 7/27/11]