May 21, 2009
As I see it the proposed changes are in response to "predatory shorting"."Intellectual shorting" has never been a real problem.You don't need an up-tick rule.As long as shorts can't hit the bid and must wait at the ask,they can't drive the price down.No loopholes for etf and options market.Pre-borrow for shorts would help.That would curb spur of the moment predatory shorting.The "intellectual shorts" that carefully plan their trade would have no problem placing their trades.I am sure you have plenty of "predators" pretending they are "intellectuals".End naked shortingBig fine for failure to deliver and next day buy-in.Target the problem.Go after the predator.