July 11, 2013
Securities and Exchange Commission (SEC) Rule 13h-1 requires that broker-dealers record and monitor activity by large traders associated with their firms, and report the activity to the SEC via the Electronic Blue Sheet (EBS) system. Rule 13h-1 defines large traders as persons who exercise investment discretion and transact certain significant, aggregate volumes or values in National Market System (NMS) securities. November 1, 2013, is the final deadline for broker-dealers to comply with Rule 13h-1.
Concurrent with Rule 13h-1, Financial Industry Regulatory Authority® Regulatory Notice 12-47 and Regulatory Notice 13-16 require firms to report time of execution in Eastern Time for ALL transactions in U.S. securities, including options, by November 1. The requirement is not limited to large trader EBS transactions.