October 10, 2008
Your office eliminated the uptick rule on July 6, 2007. The rule had been in place since 1938. What makes us so smart now to think that this rule can be eliminated without negative consequences? Good companies are now being shorted like crazy by individuals/companies/hedge funds. In this period of frenzied selling the short selling is actually fueling the decline as many people are also in a rush to “cash out”. Most people (who apparently are not in the know...including myself) believe that the uptick rule should be reinstated. Why wouldn’t your office, even if you felt the rule did not have any effect, reinstate it? If it has not effect...than having the uptick rule is just as easy as not having it...correct?
The DOW was at 13424.39 when the uptick rule was eliminated...tonight, as I type this, we’re at 8451.19. It seems that reinstating the uptick rule couldn’t hurt...and would actually give the appearance that the SEC is pulling out all the stops.
On October 6, 2008, Erik Sirri, director of the Securities and Exchange Commission's Division of Trading and Markets, said that the SEC is considering bringing back the uptick rule, stating, "It's something we have talked about and it may be something that we in fact do."
Let’s hope so!
John Oberhofer