October 30, 2013
Ownership and Control ("OCR") Reports, Forms 102/102S, 40/40S, and 71
I support the final rule on ownership and control reporting as it provides the Commission with greater detail on both who owns accounts and who controls accounts in the futures, options on futures, and swaps markets.
The reforms require, for the first time, that accounts which trade more than a certain volume in a day have to disclose who owns or controls them. Previously, the Commission only had a window into the ownership of those accounts that had large positions at the end of the day. This new information is critical in today’s world of high frequency trading, as many accounts trade often throughout the day but end the day without reportable positions. Thus, with these reforms, the Commission will get additional tools to oversee the markets’ largest day traders and high frequency traders.
There is also flexibility built into the rule such that if some of the required information on accounts has already been reported through a legal entity identifier, the market participant does not have to submit it twice.
Further this rule modernizes the reporting by requiring electronic submission of information, rather than by mailing or faxing forms.
These reforms enhance the Commission’s ability to oversee the markets, as well as detect market manipulation and abusive or disruptive trading practices.
Last Updated: October 30, 2013