After three proposals, on July 26, 2011 the SEC adopted Rule 13h-1 aimed at high frequency traders. A “large trader” will be defined as a person who exercises investment discretion in effecting 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 (excluding certain transactions not characteristic of arm’s length secondary market transactions). Large traders will be required to file a new Form 13H to identify themselves to the SEC, which will then assign each large trader a unique identification number. Large traders will be required to provide this number to their broker-dealers, who will be required to monitor accounts for trading that exceeds the large trader threshold, maintain transaction records for each large trader and report that information to the SEC upon request. Large traders will be required to update Form 13H periodically and provide certain additional identifying information to the SEC upon request. Information reported under Rule 13h-1, including Form 13H, will be confidential and not publicly available. Rule 13h-1 becomes effective 60 days after its publication in the Federal Register. Large traders will have four months to comply with the rule’s self-identification requirement while broker-dealers will have nine months to comply with the rule’s record keeping and reporting requirements. During its open meeting, the SEC noted its plan to propose in the near future a consolidated audit trail that would capture greater customer and order information across the markets. A copy of the SEC release regarding the rule can be obtained by clicking the following link.