August 23, 2009
As an active private trader, I am supportive of the "Circuit Breaker" proposal, which would initiate restrictions if a security was experiencing a severe decline.
This rule would serve the purpose of protecting a security from being "slammed down" by massive short selling, while at the same time permitting traders to engage in a normal level of short selling, which is healthy for the market, and for maintaining fairness and liquidity.
However, an overall market-wide uptick rule is not necessary, and will severly restrict the ability of thousands of traders and investors to engage in a process that is healthy in maintaining a fair and open price discovery process.
A market-wide uptick rule is just overkill and completely unwarranted.