June 11, 2009
Reinstate the uptick rule now. No more waiting. The uptick should be for more than 1 cent, as in 1938 1/8 of a dollar was the smallest increment used.
The other problem is with the brockerage houses. They have burried in client aggreements the right to borrow their clients shares at will at no cost. I can assure you that these clients do not want their shares loaned out, with the end result being that their share price is reduced. For the brockerage houses, this is a conflict of interest, as they should be looking out for their clients best interest, not banging down their clients securities. The brockerages should be required to get explicit authority to short a clients shares each and every time it is done.