August 24, 2009
It seems as if the SEC is wagging it's tale and doesn't have a clue as to the reality of the situation. The uptick rule will accomplish only two things.
First it will lie to the investor and tell them that you are on top of the situation.
Second it will allow the "pro" to do whatever he wants to do and sell on a minus tick. The "pro" = day trader, money manager, hedge fund etc....The "pro" will use a "bullet" also know as a married put and get around your fake rule.
The answer is really very very simple. All you have to do is enforce the existing naked short selling rule. Increase the fines to treble damages and it will stop. That is if that is what you really want to accomplish. That is the real question...what do you really want to accomplish?
yYou need to invite some real offenders of the rule and ask them how they would get around almost any rule you make. I would be willing to sit on this panel.