February 11, 2009
When will the uptick rule be reinstated? This is the rule that requires a trader to wait for a stock price to "tick up" (at least 10 cents) before the trader could sell the stock short. This was repealed by Cox in 2005. The volatility index (VIX) tripled since its repeal, and has made the Stock Market a verboten place for 401K or other retirement fund investment. Bear raiders have taking advantage of not having an "uptick" rule to drive stocks to zero.
PS Nake short selling -- failure to clear and settle at T+3 -- should be persecuted as a felony.
Martin Van Luven