Large Traders can trade in many different assets like stocks and bonds, commodities and currencies, derivatives and structured products. Large traders are also known as HFTs or high frequency traders. These traders usually make trades sometimes thousands of times a second, compare to a normal trader that makes few trades per day. Such traders are in the news more often than good news and they are blamed by some for-market volatility and sluggish trading. The SEC plan to limit the HFTs from trading with the help of this rule making the trading volume to be limited to no more than 3% of the average volume per stock or ETF per second or about 500,000 shares per second. The volume for stocks that exceed $10 billion would be limited to five percent of the average trade volume per day. This means that if a stock has daily average volume of 1 million shares, the HFTs will only be allowed to trade 1.These traders are the largest traded securities in the U.S. market, in terms of volume and market value. These traders can be large banks, investment funds, hedge funds, or other financial institutions. The SEC allows these large traders to remain classified as "large" even if they fall below the $50 billion threshold.
