Written by Ildiko Duckor
An entity that meets the definition of a “Large Trader” after October 3, 2011 must file its initial Form 13H with the SEC by December 1, 2011 to be assigned a large trader identification number (LTID). The filing is done electronically through the SEC’s EDGAR system. The LTID must be disclosed to registered broker-dealers effecting transactions on behalf of the Large Trader.
If you as a general partner or investment adviser (including any entities or individuals over which you have control, e.g., the right to vote or direct the vote of 25% or more of a class of voting securities of an entity) have investment discretion over aggregate transactions in exchange-listed securities that equal or exceed the Identifying Activity Level of: (i) 2 million shares or $20 million during any calendar day or (ii) 20 million shares or $200 million during any calendar month, you may qualify as a Large Trader and may have to file a Form 13H.
When calculating the “Identifying Activity Level:” (i) aggregate all transactions during the specified period (one day and/or one month) (ii) for all “NMS securities” (national market securities, generally (exchange-listed securities including equities and purchases and sales (but not exercises) of options) and (iii) exclude the specified transactions that are exempt from consideration (as listed in the below-linked documents).
Form 13H filing is required to be filed annually with the SEC within 45 days after the end of a Large Trader’s full calendar year.
A full text of the SEC Final Rule and Form 13H is available here.
Please contact the IFIM team for assistance.