Large Trader Reporting Rule - even for penny stocks?

Discussion in 'Retail Brokers' started by jackpearson, Nov 22, 2011.

  1. If you trade more than 20 million shares in a month, starting next month, you have to register with the SEC as a "Large Trader".

    What about if trading 1 million shares of a 0.001 cent stock continually in a month?

    or trading sub $1 stocks and you go over 20,000,000 shares in a month across all your accounts? Do you have to register with the SEC as part of the Large Trader Rule?
  2. More burdensome nonsense from the useless and incompetent clowns of the SEC.

    Here is Large Trader Reporting FAQs:

    "4. What is an "NMS security"?
    An NMS security is "any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan, or an effective national market system plan for reporting transactions in listed options." This would generally include any security or class of securities listed on national exchanges or traded through NASDAQ, including equities and options (e.g., common stock, ETFs, ADRs, etc.). We have been informed by FINRA, the U.S. self-regulatory organization responsible for broker-dealers, that they consider the list of OATS-eligible securities to be a complete list of NMS securities."

    OATS list is at:
  3. holy cow. even otcbb stocks are part of the 20 million shares a month? wow.

    doing $100k worth of round trips on a 1 cent stock over the course of an entire month would make a trader a "Large Trader" who has to register with the SEC, even if they trade nothing else the whole month.

    Fortunately for me, that's not my trading style. But for people who trade penny stocks, they're going to be in for a surprise with this rule if you're correct.