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SEC To Consider Large Trader Reporting System Next Week
Last update: 7/20/2011 11:24:14 AM

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By Jessica Holzer
Of DOW JONES NEWSWIRES

Washington (Dow Jones)--The U.S. Securities and Exchange Commission will meet Tuesday to adopt new rules requiring large traders to report next-day transaction data when regulators request it.

The SEC first proposed the new reporting system in April 2010 as a way for regulators to get a better grip on high-frequency trading, in which traders buy and sell stocks at lightning speed.
But the proposal has gained fresh urgency since last year's May 6 'flash crash,' which briefly erased nearly $1 trillion in stock-market value in just 20 minutes.

SEC Chairman Mary Schapiro has argued the new trading system would help regulators diagnose the causes of market meltdowns more quickly and also assist investigators in spotting manipulative or abusive activity.

Under the plan, the SEC would assign large traders a unique identifying number used to track their transactions. The SEC estimates the rule would apply to the largest 400 market participants.

-Jessica Holzer; 202-862-9228; [e-mail]

(END) Dow Jones Newswires
July 20, 2011 11:24 ET (15:24 GMT)