優先級或專業客戶定單

2009年4季度,一些美國期權交易所(CBOE;ISE)實施細則將來自被視為“專業”(即擁有的信息和/或技術能供其同經紀交易商一樣進行交易的個人或實體)的一批公眾客戶的定單與零售客戶區分開來。根據該等細則,任何不是經紀交易商且在給定月份為自己的受益賬戶在所有期權交易所下達的日平均期權定單數超過390(無論執行與否)的客戶賬戶都將被分類為專業。自CBOE和ISE最先實施以來,大多數其他美國期權交易所也執行了類似細則將定單區分為“專業”。

代專業客戶提交至這些期權交易所的定單在執行優先級方面與經紀交易商待遇相同,且會產生交易費用,從($0.65)的折扣到$1.12的費用不等(取決於期權類別)。 

經紀商需每個季度進行一次審查,確定該季度內哪些客戶超過了390個定單的臨界值以及哪些客戶將在下一個季度被指定為專業。請注意,就該等細則而言,價差定單被視為單個定單,而不是每條邊作一個定單。IB將會向受該等細則影響的客戶發出通知。此外,IB的智能定單傳遞在做出傳遞決定時也會將這些新的交易所費用考慮在內。

更多詳細信息,請參見以下鏈接:

ISE監管通告2009-179

CBOE監管通告RG09-148

优先级或专业客户定单

2009年4季度,一些美国期权交易所(CBOE;ISE)实施细则将来自被视为“专业”(即拥有的信息和/或技术能供其同经纪交易商一样进行交易的个人或实体)的一批公众客户的定单与零售客户区分开来。根据该等细则,任何不是经纪交易商且在给定月份为自己的受益账户在所有期权交易所下达的日平均期权定单数超过390(无论执行与否)的客户账户都将被分类为专业。自CBOE和ISE最先实施以来,大多数其他美国期权交易所也执行了类似细则将定单区分为“专业”。

代专业客户提交至这些期权交易所的定单在执行优先级方面与经纪交易商待遇相同,且会产生交易费用,从($0.65)的折扣到$1.12的费用不等(取决于期权类别)。 

经纪商需每个季度进行一次审查,确定该季度内哪些客户超过了390个定单的临界值以及哪些客户将在下一个季度被指定为专业。请注意,就该等细则而言,价差定单被视为单个定单,而不是每条边作一个定单。IB将会向受该等细则影响的客户发出通知。此外,IB的智能定单传递在做出传递决定时也会将这些新的交易所费用考虑在内。

更多详细信息,请参见以下链接:

ISE监管通告2009-179

CBOE监管通告RG09-148

Priorité ou ordres de clients professionnels

Fin 2009, certaines Bourses d'options américaines (CBOE, ISE) ont instauré des règles visant à distinguer les ordres provenant d'un groupe de clients publics considérés non pas comme des particuliers mais comme des "Professionnels" (des personnes ou entités qui ont accès aux informations et/ou à la technologie leur permettant de trader de la même manière qu'un courtier-négociateur). Conformément à ces règles, tout compte client qui n'est pas un courtier négociateur et qui passe en moyenne plus de 390 ordres d'options cotées par jour (qu'elles soient exécutées ou pas) sur l'ensemble des marchés d'options pour un mois donné, sera considéré comme un Professionnel. Depuis l'instauration de cette règle par la CBOE et l'ISE, la plupart des marchés d'options ont mis en place des procédures similaires afin de distinguer les ordres émanant de "Professionnels".

Les ordres soumis au nom de clients professionnels sur ces Bourses d'options seront traités, en termes de priorité d'exécution, comme s'ils émanaient de courtiers négociateurs. Ils seront par ailleurs soumis à des frais de transaction par contrat allant de remises de ($0.65) à des frais de $1.12 en fonction des classes d'options. 

Les courtiers sont tenus de vérifier tous les trimestres si des clients ont excédé la limite de 390 ordres par mois pour un trimestre donné et doivent donc passer au statut de Professionnel le trimestre civil suivant. Veuillez noter qu'en vertu de ces règles, les ordres spread sont considérés comme un ordre unique; chaque jambe du spread ne représente donc pas un ordre. Les clients impactés par ces règles seront informés par IB. Par ailleurs, le Smart router IB prendra en considération ces nouveaux frais de Bourse lors du routage.

Pour plus d'informations, veuillez consulter les liens suivants:

ISE Regulatory Circular 2009-179

CBOE Regulatory Circular RG09-148

Ордера приоритетных или профессиональных клиентов

В 4-ом квартале 2009 года определенные американские биржи опционов (CBOE, ISE) ввели правила, различающие ордера публичных клиентов со статусом "Профессионал" (т.е. лиц с доступом к данным и/или технологиям, которые в некоторой мере позволяют им торговать как брокер-дилер) и розничные ордера.  Согласно этим правилам, если клиент не является брокером-дилером, а среднедневной объем опционных ордеров, размещенных на его счетах, в каком-либо месяце превышает 390 (независимо от того, исполняются ли они или нет), он будет классифицирован как "Профессионал". После первичной интеграции на CBOE и ISE похожие нормы опознавания "профессиональных" ордеров были введены и большинством других опционных бирж США.

Уровень важности исполнения ордеров, размещенных на данных биржах от имени профессиональных клиентов, будет соответствовать ордерам брокеров-дилеров. На них также будет налагаться плата за контракт, которая может колебаться от рибейтов в $0.65 до сборов в $1.12 (в зависимости от класса опционов). 

Брокеры обязаны производить ежеквартальную проверку для выявления клиентов, которые превысили порог в 390 ордеров за любой месяц рассматриваемого периода и которым в следующем квартале будет присвоен статус "Профессионал". Обращаем внимание, что в рамках данного правила спред-ордера рассматриваются как один ордер, т.е. леги не считаются отдельными сделками. Клиенты, подпадающие под действие этого предписания, будут уведомлены IB.  Вдобавок, Smart-маршрутизатор IB будет учитывать эти новые биржевые сборы, принимая решение, куда направить ордер.

Дополнительную информацию можно найти по следующим ссылкам:

Нормативный циркуляр ISE 2009-179

Нормативный циркуляр CBOE RG09-148

優先またはプロフェッショナルに分類されるお客様の注文

2009年第四四半期、特定の米国オプション取引所(CBOEおよびISE)において、「プロフェッショナル」(ブローカーディーラーと同じような方法で取引を行うことのできる情報および/またはテクノロジーにアクセスのある個人や機関)とみなされる一般顧客からの注文を区別する規則が実施されました。これに基づき、ブローカーディーラーではなく、特定の月に自身の口座のために毎日平均で390以上の上場オプション注文(約定したかどうかに関わらず)をすべてのオプション取引所に発注する口座は、プロフェッショナルとみなされるようになります。CBOEおよびISEによるオリジナルの実施以降、その他ほとんどの米国オプション取引所においても、「プロフェッショナル」注文の区別が実施されるようになりました。

プロフェッショナルのお客様の代理としてこれらオプション取引所に発注される注文は約定の優先を目的としてブローカーディーラーとして取り扱われ、リベート($0.65)から$1.12の手数料(オプションクラスにより)の範囲内で、コントラクトあたりの手数料の対象となります。 

ブローカーは暦四半期ごとにレビューを行い、この期間中の1ヶ月間に390注文の枠を超え、次の暦四半期にプロフェッショナルとして指定されるべき顧客を割り出すことが義務付けられます。この確認の際、スプレッド注文はスプレッドの各レッグを個別の注文として数えるのではなく、スプレッド注文ごとにひとつの注文として数えます。これによる影響のあるお客様には弊社よりご連絡を差し上げます。またスマートルーティング注文は、新しく発生する取引所手数料を考慮の上でルーティング先を決定するようにデザインされています。

詳細は以下のリンクをご覧ください:

ISE Regulatory Circular 2009-179

CBOE Regulatory Circular RG09-148

Common Reporting Standard (CRS)

The Common Reporting Standard (CRS), referred to as the Standard for Automatic Exchange of Financial Account Information (AEOI), calls on countries to obtain information from their financial institutions and exchange that information with other countries automatically on an annual basis. The CRS sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.
 
Interactive Brokers will comply with the OECD's Common Reporting Standard – Automatic Exchange of Information (CRS-AEOI).
 
  • What is reported:
    • Name
    • Address
    • Tax ID Number
    • Tax Country
    • Date of Birth
    • Place of Birth
    • Year-end account balance
    • Gross Proceeds (all sales)
    • Interest income
    • Dividend income
  • To whom is the information reported:
    • For accounts held by the Interactive Brokers U.K. entity, the above information will be reported to HM Revenue & Customs of the United Kingdom. (During the first reporting period in May 2017, only Jurisdiction 1 countries will be reported.) The list can be found on the OECD website by clicking here http://www.oecd.org/tax/transparency/AEOI-commitments.pdf
    • For accounts held by Interactive Brokers Hong Kong entity, the above information will be reported to Inland Revenue Department of Hong Kong.
    • For accounts held by Interactive Brokers Japan entity, the above information will be reported to National Tax Agency of Japan
    • For accounts held by Interactive Brokers India entity, the above information will be reported to Income Tax Department of Japan
    • For accounts held by Interactive Brokers Canada entity, the above information will be reported to the Canada Revenue Agency
    • For accounts held by Interactive Brokers LLC, there is no reporting since the United Sates has not signed the CRS.
  • When will reporting take place and for what timeframe:
    • For IB UK accounts, the information will be reported for the first time in May 2017 for the calendar year 2016
    • For IB India, the information will be reported for the first time in May 2017 for the calendar year 2016
    • For IB HK, the information will be reported for the first time in May 2018 for the calendar year 2017
    • For IB Japan, the information will be reported for the first time in May 2018 for the calendar year 2017
    • For IB Canada, the information will be reported for the first time in May 2018 for the calendar year 2017
    • Non-Disclosed Introducing Brokers are responsible for their own reporting

 

SEC Tick Size Pilot Program

Background

Effective October 3, 2016, securities exchanges registered with the SEC will operate a Tick Size Pilot Program ("Pilot") intended to determine what impact, if any, widening of the minimum price change (i.e., tick size) will have on the trading, liquidity, and market quality of small cap stocks.  The Pilot will last for 2 years and it will include approximately 1,200 securities having a market capitalization of $3 billion or less, average daily trading volume of 1 million shares or less, and a volume weighted average price of at least $2.00.

For purposes of the Pilot, these securities will be organized into groups that will determine a minimum tick size for both quote display and trading purposes. For example, Test Group 1 will consist of securities to be quoted in $0.05 increments and traded in $0.01 increments and Test Group 2 will include securities both quoted and traded in $0.05 increments.  Test Group 3 will include also include securities both quoted and traded in $0.05 increments, but subject to Trade-at rules (more fully explained in the Rule). In addition, there will be a Control Group of securities that will continue to be quoted and traded in increments of $0.01. Details as to the Pilot and securities groupings are available on the FINRA website.

 

Impact to IB Account Holders 

In order to comply with the SEC Rules associated with this Pilot, IB will change the way that it accepts orders in stocks included in the Pilot.  Specifically, starting October 3, 2016 and in accordance with the phase-in schedule, IB will reject the following orders associated with Pilot Securities assigned to Test Groups:

  • Limit orders having an explicit limit that is not entered in an increment of $0.05;
  • Stop or Stop Limit orders having an explicit limit that is not entered in an increment of $0.05; and
     
  • Orders having a price offset that is not entered in an increment of $0.05.  Note that this does not apply to offsets which are percentage based and which therefore allow IB to calculate the permissible nickel increment

 Clients submitting orders via the trading platform that are subject to rejection will receive the following pop-up message:

 

 The following order types will continue to be accepted for Pilot Program Securities:

  • Market orders;
  • Benchmark orders having no impermissible offsets (e.g., VWAP, TVWAP);
  • Pegged orders having no impermissible offsets ;
  • Retail Price Improvement Orders routed to the NASDAQ-BX and NYSE as follows:
    - Test Group 1 in .001

      - Test Group 2 and 3 in .005

     
 

Other Items of Note

  • GTC limit and stop orders entered prior to the start of the Pilot will be adjusted as allowed (e.g., a buy limit order at $5.01 will be adjusted to $5.00 and a sell limit at $5.01 adjusted to $5.05).
  • Clients generating orders via third-party software (e.g., signal provider), order management system, computer to computer interfaces (CTCI) or through the API, should contact their vendor or review their systems to ensure that all systems recognize the Pilot restrictions.
  • Incoming orders to IB that are marked with TSP exception codes from other Broker Dealers will not be acted upon by IB. For example, IB will not accept incoming orders marked with the Retail Investor Order or Trade-At ISO exception codes.
  • The SEC order associated with this Pilot is available via the following link: https://www.sec.gov/rules/sro/nms/2015/34-74892-exa.pdf
  • For a list of Pilot Program related FAQs, please see KB2750

 

Please note that the contents of this article are subject to revision as further regulatory guidance or changes to the Pilot Program are issued.

 

 

Amendment Requirements for SEC 13D and 13G Filers

Introduction

The following article is intended to provide an overview of U.S. Securities and Exchange Commission (“SEC”) Sections 13(d) and 13(g) Amendment Requirements. The overview is general in nature, and readers are encouraged to review the specific regulations and/or consult with a compliance professional to determine the applicability to their particular situation.

 

Amendment Requirements for 13D Filers

Rule 13d-2 of the Securities Exchange Act of 1934 (the "Act") requires you to promptly, within two business days, amend Schedule 13D whenever material changes in the information disclosed on a Schedule 13D occur. A material change includes any material increase or decrease in the percentage of the class of securities you are deemed to "beneficially own." For instance, if you manage more than 5% in the shares of an issuer and the percentage managed increases or decrease by more than 1% (whether through a transaction or other event), you must amend your 13D filing.

You must continue to make appropriate amendments so long as you continue to manage more than 5% of any class of an issuer's voting shares. If you fall below the 5% threshold, you must make one (final) amendment notifying the SEC of this.

There are also other circumstances that qualify as a material change requiring an amendment. For instance, if you acquire warrants that are not exercisable within 60 days, you may still need to amend Schedule 13D to revise your discussion of your plans concerning the acquisition of additional securities and related contracts, even if the amount of voting shares you manage has not yet changed.

 

 

Amendment Requirements for 13G Filers

Qualified institutional investors, including investment advisors registered with the SEC or a state, must amend their Schedule 13G within 10 days after the end of the first time their "beneficial ownership" exceeds 10% of the class of equity securities at month end.

After that, qualified institutional investors must amend their Schedule 13G within 10 days from when their "beneficial ownership" increases or decreases by more than 5% of the class of securities over the amount held at the previous month end.

Qualified institutional investors must also file a Schedule 13D within 10 calendar days after they cease being eligible to file a Schedule 13G rather than a Schedule 13D.

In addition, passive investors beneficially owning less than 20% of an equity security must amend their Schedule 13G promptly, within two business days, after acquiring beneficial ownership of more than 10% of the class of equity securities, and after that, within two business days of increasing or decreasing their ownership by more than 5%.

You must also file an annual amendment to the 13G if there have been any changes - immaterial or material - to your filed 13G. This must be done within 45 days of year end. You do not need to file an amendment if there have been no changes to the information filed or if the only change is to the percentage of securities owned resulting solely from a change in the number of shares outstanding.

 

 

 

Important Notes

 

· You should independently review your Schedule 13D and 13G filing obligations. There are many factual determinations that may impact whether you must make a filing or amend a prior filing, which Schedule you must file (or amend), and when you must make your filing.

 

· Interactive Brokers will provide you with notices, on a best efforts basis, only when you cross certain thresholds (5%, 10%, 20%) or a significant change in the percentage of shares you manage occurs. There may be other situations that give rise to the need to file or amend a Schedule 13D or Schedule 13G for which you will not receive an alert from Interactive Brokers.

 

· You should monitor holdings of specific classes of issuer equity securities in the accounts you manage to ensure compliance with your Schedule 13D or 13G filing and amendment obligations.

 

· Notices do not cover (nor will they take into account) certain securities not commonly traded through Interactive Brokers, namely equities in:

a. an insurance company that would have to be registered except for the exemption from registration in Section 12(g)(2)(G) of the Act;

b. a closed-end investment company registered under the Investment Company Act of 1940; or

c. a Native Corporation pursuant to Section 1639c(d)(6) of title 43.

You should therefore separately account for and analyze any holdings of such equity securities you may have to comply with Section 13(d) of the Act.

 

· Alerts sent are based exclusively on the beneficial ownership of relevant securities of the specific advisor identified. It does not account for any group aggregation rules that may apply when two or more persons agree to act together for the purpose of acquiring, holding, voting or disposing of the equity securities of an issuer.

 

· Alerts sent relate solely to holdings in accounts maintained at Interactive Brokers and not any accounts maintained elsewhere. But you should take any accounts you maintain elsewhere into consideration when determining whether you must file or amend a Schedule 13D or 13G and what information to include in those schedules.

 

· Alerts sent will not take into consideration your Schedule 13D or 13G filing obligations arising prior to the date of Interactive Broker's implementation of this alert program.
 

 

 

 

For Additional Information

For more information on Schedules 13D and 13G, please visit the SEC website at

http://www.sec.gov/answers/sched13.htm and

https://www.sec.gov/divisions/corpfin/guidance/reg13d-interp.htm

SEC Sections 13(d) and 13(g) Filing Requirements

Introduction

The following article is intended to provide an overview of U.S. Securities and Exchange Commission (“SEC”) Sections 13(d) and 13(g) Filing Requirements. The overview is general in nature, and readers are encouraged to review the specific regulations and/or consult with a compliance professional to determine the applicability to their particular situation.

Background on Schedules 13D and 13G

These rules apply to anyone who “beneficially owns” Section 12 securities as defined in the Act. This generally includes shares you own or manage. Specifically, you are deemed to “beneficially own” for purposes of Section 13(d) a security if you have, either directly or indirectly:
• The power to vote or direct the voting of a security;
• The power to dispose or direct the disposition of a security; or
• The right to acquire “beneficial ownership” of such security within 60 days through the exercise of an option or warrant or the exercise of a conversion right in a convertible security.

To determine whether you “beneficially own” more than 5% of a class of equity security, measure the amount you are deemed to “beneficially own” against the total amount of outstanding securities of that class. You may rely upon the issuer’s most recent quarterly or annual report (10-Q or 10-K) filed with the SEC and any current report (Form 8-K) filed later in identifying the amount of outstanding shares. You must include any equity securities you may obtain within 60 days through the conversion or exercise of options, warrants or other as outstanding shares in this calculation. But you do not need to include similar non-exercised or converted shares held by anyone else.
 

 

What filings you must make

Your initial Schedule 13D filing must be made within 10 days of the trade date on which you first exceeded the 5% threshold. Disclosures in Schedule 13D must be current through the date of filing.

Schedule 13D filings must also be promptly amended, within two business days, to reflect any material changes. This includes the acquisition or disposition of 1% or more of the reported securities or significant changes in any intent you may have to control the issuer.

Some traders may be able to file an abbreviated filing—called a 13G—instead of a 13D. This option is available to passive investors owning less than 20% of the security or exempt investors owning more than 5% of an issuer’s shares before the issuer’s registration of the class of securities. In addition, SEC or state-registered advisors can only file a Schedule 13G if they have acquired the relevant securities in the ordinary course of the firm’s advisory business and not for the purpose of or with the effect of influencing control of the issuer. Also, the advisor must have notified any discretionary account owner on whose behalf the advisor holds more than 5% of relevant equity securities of his potential reporting obligation. Very specific filing thresholds and deadlines apply to initial and amended Schedule 13G filings.
 

 

Important Notes

• Please keep in mind that your clients and your firm’s direct and indirect control persons(which may include partners, shareholders and parent companies) may have their own independent reporting obligations.

• You should independently review your Schedule 13D and 13G filing obligations. There are many factual determinations that may impact whether you must make a filing or amend a prior filing, which Schedule you must file (or amend), and when you must make your filing.

Interactive Brokers will provide you, on a best efforts basis, with notices only when you cross certain thresholds (5%, 10%, 20%) or a significant change in the percentage of shares you manage occurs. There may be other situations that give rise to the need to file a Schedule 13D or 13G for which you will not receive an alert from Interactive Brokers.

Interactive Brokers will only send you one initial filing alert for each threshold you cross. We will only resend you an initial filing alert if you cross one of the three thresholds (5%, 10% or 20%) that is higher than the threshold you have crossed before. (i.e., we will not tell you if you crossed the 5% threshold if you have already crossed the 10% threshold.) Therefore, please continually monitor your positions and make the appropriate filing(s) after you receive an initial filing or amendment notice.

You should monitor holdings of specific classes of issuer equity securities in the accounts you manage to ensure compliance with your Schedule 13D or 13G filing and amendment obligations.

• Notices do not cover (nor will they take into account) certain securities not commonly traded through Interactive Brokers, namely equities in:

a. an insurance company that would have to be registered except for the exemption from registration in Section 12(g)(2)(G) of the Act;

b. a closed-end investment company registered under the Investment Company Act of 1940; or

c. a Native Corporation pursuant to Section 1639c(d)(6) of title 43.

You should therefore separately account for and analyze any holdings of such equity securities you may have to comply with Section 13(d) of the Act.

• Alerts sent are based exclusively on the beneficial ownership of relevant securities of the specific advisor identified. The alerts will not account for any group aggregation rules that may apply when two or more persons agree to act together for the purpose of acquiring, holding, voting or disposing of the equity securities of an issuer.

Alerts sent relate solely to holdings in accounts maintained at Interactive Brokers and not any accounts maintained elsewhere. But you should take any accounts you maintain elsewhere into consideration when determining whether you must file or amend a Schedule 13D or 13G and what information to include in those schedules.

• Alerts sent will not take into consideration your Schedule 13D or 13G filing obligations arising prior to the date of Interactive Broker's implementation of this alert program.
 

For Additional Information

For more information on Schedules 13D and 13G, please visit the SEC website at:

http://www.sec.gov/answers/sched13.htm  and 

https://www.sec.gov/divisions/corpfin/guidance/reg13d-interp.htm
 

Schedule 13D and 13G Reporting by Certain Beneficial Owners of Voting Equity Securities

 

Overview
 
The Securities and Exchange Commission (“SEC”) requires large holders of certain securities to file a Schedule 13D. Specifically, people or groups that beneficially own more than 5% of a voting class of any equity security registered under Section 12 of the Securities Exchange Act of 1934 (the “Act”) must file a Schedule 13D with the SEC. In some situations, these people may be eligible to make an abbreviated filing, Schedule 13G instead of Schedule 13D. 
 
What securities trigger this obligation?
 
Section 13(d) of the Securities Exchange Act of 1934 (the “Act”) imposes reporting obligations on those who own or manage more than 5% of any voting class of the following types of equity securities:
·         Any security registered under Section 12 of the Act;
·         Any security of an insurance company that would have been required to be so registered except for the exemption in section 12(g)(2)(G) of the Act; and
·         Any security issued by a closed-end investment company registered under the Investment Company Act of 1940. 
 
Holding non-voting securities does not trigger any obligation to file a Schedule 13D or 13G. Securities are generally deemed voting if the holders of the class are “presently entitled to vote for election of directors.” Securities that are non-voting but provide the holder with voting rights under certain circumstances remain non-voting until these circumstances occur and the shares actually become voting. 
 
Who qualifies as a “beneficial owner”?
 
These rules apply to anyone who “beneficially owns” Section 12 securities as defined in the Act. This generally includes persons who directly or indirectly have sole or share voting or investment power with respect to the security. Specifically, you may be deemed to “beneficially own” a security for purposes of Section 13(d) if you have, either directly or indirectly:
·         The power to vote or direct the voting of a security;
·         The power to dispose or direct the disposition of a security; or
·         The right to acquire “beneficial ownership” of such security within 60 days through the exercise of an option or warrant or the exercise of a conversion right in a convertible security.
 
An indirect beneficial owner is one who is able to control the decisions of the direct beneficial owner. Several persons may share beneficial ownership if they jointly make the voting or investment decisions with respect to the subject securities. 
 
A parent company will be deemed to have indirect or shared beneficial ownership of any shares beneficially owned by its subsidiaries. In situations where subsidiaries exercise voting and investment power over the securities independently from the parent, parent aggregation may not be required.  
 
Under certain circumstances, persons who agree to act together on acquiring, holding, voting or disposing of an issuer’s securities (e.g., pursuant to a shareholders’ agreement) may be deemed members of a group, and each group members is deemed to beneficially own the securities held by the other members of the group.  For instance, a group may be deemed formed for these reporting purposes if it retains a common advisor in an attempt to influence a management decision. 
 
Investment advisors are deemed to beneficially own the securities held in any account over which they have discretion. Advisors are also deemed to beneficially own securities held in nondiscretionary accounts to the extent that the advisors have or share de facto authority to direct the voting or disposition of the securities held in the nondiscretionary accounts. 
 
You are generally deemed to beneficially own any securities over which you have the right to acquire beneficial ownership within sixty days. An option or right convertible into an equity security within sixty days will not be deemed to confer beneficial ownership to the holder if the conversion is subject to material contingencies outside of the holder’s control.  Any person acquiring a security with the purpose or effect of changing or influencing control of the issuer is deemed to be the beneficial owner of such securities immediately upon their acquisition, without taking into consideration the sixty-day timeframe. Also, you may need to disclose options or rights that are not convertible into an equity security within sixty days or that otherwise do not confer beneficial ownership if there are plans to acquire additional equity securities (Item 4 of Schedule 13D) or contracts concerning the subject securities (Item 6 of Schedule 13D). 
 
Schedule 13D initial filings  
 
“Beneficial owners” must file an initial Schedule 13D within ten days of the trade date of the first acquisition causing their holdings to exceed the 5% threshold.  Disclosures in Schedule 13D must be current through the date of filing. 
 
To determine whether you “beneficially own” more than 5% of a class of an equity security, you need to measure the amount you are deemed to “beneficially own” against the total amount of outstanding securities of that class. For information on the total amount of the class currently outstanding, a beneficial owner may rely upon the issuer’s most recent quarterly or annual report (10-Q or 10-K) filed with the SEC and any current report (Form 8-K) filed later. You must include any equity securities you may obtain within 60 days through the conversion or exercise of options, warrants or outstanding shares in this calculation. But you do not need to include similar non-exercised or converted shares held by anyone else.  For instance, if an issuer had 100 shares of common stock outstanding and you beneficially own a note convertible within sixty days into ten shares of the issuer’s common stock, then you are deemed to beneficially own 10/110 or 9.09% of the common stock of that issuer. 
 
Schedule 13D seeks general information relating to the beneficial owner, the number of shares beneficially owned, and fairly detailed information on the nature and purpose of ownership of the subject securities. This includes the source and amount of funds or other consideration used for the acquisition (in Item 3), any significant plants or proposals with respect to the issuer (in Item 4), and any other contracts, arrangements or understandings between the beneficial owner and other parties regarding the issuer’s securities (in Item 6). Copies of certain documents must be filed as exhibits to Schedule 13D, in Item 7. 
 
Schedule 13D amended filings
 
Schedule 13D filings must be promptly amended to reflect any material changes in the information. “Promptly” is generally understood to mean within two business days. The duty to amend Schedule 13D continues until the filer ceases to beneficially own more than 5% of the subject securities. If you fall below the 5% threshold, you must make one (final) amendment notifying the SEC of this.  
 
Material changes may include acquiring or disposing of a material percentage of the class of securities beneficially owned (i.e., 1% or more) or changes in intent to gain control of the issuer. For instance, if you manage more than 5% in the shares of an issuer and the percentage you manage increases or decreases by more than 1% (whether through a transaction or other event), you must amend Schedule 13D.  Also, if you reserve the right to engage in certain transactions in the future in the initial filing and then subsequently decide to engage in one of those transactions, you must amend Schedule 13D because you have developed a specific intention as to a disclosable matter in the meantime. 
 
There may be other circumstances that qualify as a material change requiring an amendment. For instance, if you acquire warrants that are not exercisable within 60 days, you may still need to amend Schedule 13D to revise the discussion of plans concerning the acquisition of additional securities and related contracts, even if the amount of voting shares you manage has not yet changed. 
 
Schedule 13G initial and amended filings
 
Some “beneficial owners” may be able to file an abbreviated filing—called a Schedule 13G—instead of Schedule 13D. 
 
Three categories of beneficial owners may report ownership on the short-form Schedule 13G. The time for filing the initial Schedule 13G and subsequent amendments depends upon which of the following three categories the filer falls into:
 
1.      Qualified institutional investors include most U.S. regulated financial institutions, investment advisors registered with the SEC or a state, other institutional investors, and comparable non-U.S. financial institutions (certifying that they are subject to a regulatory scheme similar to that applicable to their U.S. counterparts) if they acquire the securities:
a.       In the ordinary course of business; and
b.      Not with the purpose or effect of changing or influencing the control of the issuer nor in connection with or as a participant in any transaction that has such purpose or effect;
 
2.      Passive investors owning less than 20% of the security who have not acquired, and do not hold, the securities with the purpose or effect of changing or influencing the control of the issuer; and
 
3.      Exempt investors include investors owning more than 5% of the equity security before the issuer registering the class under the Act who acquire not more than 2% of these securities within a twelve-month period.
a.       It is irrelevant whether exempt investors purchase or hold the securities with the purpose or effect of changing or influencing the control of the issuer. 
 
Unlike Schedule 13D, Schedule 13G requires disclosure of only basic information regarding the beneficial owner and the amount of securities beneficially owned, and does not seek information on legal proceedings or other contracts or understandings relating to the issuer’s securities. 
 
Different filing thresholds and deadlines apply to initial and amended Schedule 13G filings depending on the type of beneficial owner the filer is.
 
For more information on Schedules 13D and 13D, please review these resources on the SEC’s website:
·         Overview: http://www.sec.gov/answers/sched13.htm; and
·         Exchange Act Sections 13(d) and 13(g) and Regulation 13D-G Beneficial Ownership Reporting: https://www.sec.gov/divisions/corpfin/guidance/reg13d-interp.htm
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