June 18, 2009
Please reinstate the original uptick rule, based on the "last trade" price.
Without the uptick rule a stocks price can be manipulated lower, it is obvious. Without the uptick rule one has the ability to drive down a stocks price selling shares short, create fear and panic based selling, then buy to cover the position. If there is no uptick rule in place a short seller can physically lower the price of a stock without a single long shareholder selling one share of stock. If the original uptick rule, based on the "last trade" price, is in place you prevent the possibility of this type of manipulation, as a result the only people that could lower the price of a stock are those that actually own the stock, as it should be.
The modified uptick rule, based on the bid price, will not work because the short seller will still have the ability to lower the price of a stock, they still will be able to drive down a shares price on their own. One will be able to work around the modified uptick rule, based from the bid.
It is absolutely key that the original uptick rule, based on the "last trade" price, be reinstated for the greater good of stocks, the markets, and our economy as a whole.
Thank you