May 4, 2009
For stocks facing severe declines (and those only) I am in favor of the Proposed Uptick Rule: A market-wide short sale price test based on the last sale price or tick (a proposed uptick rule). I do not think the rule is necessary to implement across the entire market all the time as it is likely to have unintended consequences for traders, market makers, and institutions engaging in normal trading activities. Under certain circuit breaker criteria, the Proposed Uptick Rule should go into force for a given security.
In addition, I am very strongly in favor of banning naked short selling.