May 5, 2009
WE NEED TO HAVE THE "UPTICK RULE" RESTORED IMMEDIATELY!
SEC Chairwomann, Mary Schapiro change this NOW!
We need to have the Uptick Rule restored and to control the Short Sellers from ruining our daily investment stock figures that affects everyone's investments, savings and 401K's. We need to reinstate regulations to control our markets and strengthen our economy. There are far too many cheats in this country that acquire financial wealth in little time.
A former rule established by the SEC that requires that every short sale transaction be entered at a price that is higher than the price of the previous trade. This rule was introduced in the Securities Exchange Act of 1934 as Rule 10a-1. The uptick rule prevents short sellers from adding to the downward momentum when the price of an asset is already experiencing sharp declines. The SEC eliminated the rule on July 6, 2007.
The uptick rule was also known as the "plus tick rule".
By entering a short sale order with a price above the current bid, a short seller ensures that his or her order is filled on an uptick. The uptick rule is disregarded when trading some types of financial instruments such as futures, single stock futures, currencies or market ETFs such as the QQQQ or SPDRs. These instruments can be shorted on a downtick because they are highly liquid and have enough buyers willing to enter into a long position, ensuring that the price will rarely be driven to unjustifiably low levels.
Marc & Diane Norris