According to the regulator, âlargerâ traders would be required to make a filing to the SEC before receiving a number of identification.
Broker dealers would then receive the number, which would enable more efficient tracking of traders and their activity, the organisation explained.
Mary L Schapiro, SEC chairman, said: âThis rule is designed to strengthen our oversight of the markets and protect investors in the process.
âIt would give us prompt access to trading information from large traders so we can better analyze the data and investigate potentially illegal trading activity.â
The SEC defines a âlargeâ trader as an individual or firm whose transactions exceed $20 million or two million shares on any calendar day.
Previously, the commission has proposed a number of changes to legislation to improve fairness within the trading markets.
They included banning unfiltered access to markets and providing more transparency to liquidity dark pools.
By Jim Ottewill