Large Trader

AAA

DEFINITION of 'Large Trader'

An investor or organization with trades that are equal to or in excess of certain amounts as specified by the United States Securities And Exchange Commission (SEC). A large trader is defined by the SEC as "a person whose transactions in NMS securities equal or exceed 2 million shares or $20 million during any calendar day, or 20 million shares or $200 million during any calendar month." Any market participant who is, by definition, a large trader must identify himself or herself to the SEC and submit Form 13H, "Large Trader Registration: Information Required of Large Traders Pursuant To Section 13(h) of the Securities Exchange Act of 1934 and Rules Thereunder."

INVESTOPEDIA EXPLAINS 'Large Trader'

As of 2011, the SEC requires that all traders who execute a substantial amount of trading activity, as measured by volume or market value, identify themselves to the SEC by registering with the SEC through Form 13H. The SEC assigns each large trade an identification number, and collects information and analyzes each large trader's trading activity. In addition, certain registered broker-dealers are required to adhere to SEC rules regarding recordkeeping, reporting and monitoring of large traders who execute transactions through the broker-dealer.

The SEC initiated large trader reporting in response to the development of trading technology that enables trading in substantial volumes and fast execution speeds. In addition, the SEC cited the rising prominence of large traders and high-frequency traders (HFTs) in the markets and the need to have improved access to their trading activity.

Large trader reporting is intended to help the SEC identify individuals engaged in significant market activity in order to analyze their market activity and determine the impact of their trading activity.

Large traders must submit an "Initial Filing" through Form 13H and an "Annual Filing" for each applicable calendar year. A previously identified large trader who has not conducted the identifying amount of trading activity as measured by volume or market value may file for an Inactive Status, and can remain inactive and exempt from the filing requirements until the large trader trading level is made again.

RELATED TERMS
  1. Customer Type Indicator Codes - ...

    A system that uses four different codes to indicate the types ...
  2. Ceiling

    The maximum level permissible in a financial transaction. Ceiling ...
  3. Manipulation

    The act of artificially inflating or deflating the price of a ...
  4. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  5. Corner A Market

    To acquire enough shares of a particular security type, such ...
  6. Commodity Futures Trading Commission ...

    An independent U.S. federal agency established by the Commodity ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Investing Basics

    The Importance Of Corporate Transparency

    Clear and honest financial statements not only reflect value, they also help ensure it.
  2. Insurance

    International Reporting Standards Gain Global Recognition

    Comparing financial numbers from corporations in different countries is possible with the adoption of IFRS.
  3. Personal Finance

    Dawn Of The Zombie Debt

    Are old debts coming back to haunt you? We'll show you how to keep these zombies from eating you alive.
  4. Options & Futures

    Uncovering A Career In Forensic Accounting

    Does a job as a financial sleuth sound interesting to you? Dig in to learn more.
  5. Economics

    The Impact Of Ending The US Embargo On Cuba

    Many argue that ending the US embargo on Cuba will not only make US consumers happy, but also help the US economy and bring more freedoms to Cuba.
  6. Economics

    Popular Places Where U.S. Citizens Need A Visa

    A U.S. passport will get you into many countries, but not everywhere. Here's how to visit five of the most popular destinations that require visas.
  7. Brokers

    How Brokerage Fees Work

    What you need to know about fees when choosing between a full service and discount broker.
  8. Investing

    What is Asset Management?

    In the investment world, asset management refers to active management of an investor’s portfolio by a financial services company – usually an investment bank.
  9. Brokers

    OptionsXpress Vs. OptionsHouse: Which One To Pick?

    OptionsXpress and OptionsBroker -- each offers a price mix and set of services suitable for certain investors based on their trade approach and priorities.
  10. Economics

    Are You the Victim of Unfair Labor Practices?

    If you are a union member, a union leader, or a manager at a company with an established union, you should understand unfair labor practices.

You May Also Like

Hot Definitions
  1. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  2. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  3. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  4. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  5. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  6. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
Trading Center