September 29, 2009
First, I am a retired stockbroker.
The uptick rule was in effect throughout the time I was active and, in my opinion, did the job it was created to do: prevent predatory short selling.
I am quite certain that, had the uptick rule been in effect during the 2008 meltdown, the meltdown would have been much less severe.
The only reasons I can see for NOT having an uptick rule are 1) predatory short selling and 2) allowing the ability of short and ultra-short ETFs to exist. I don't think the world would be any the worse without short and ultra-short ETFs and I NEVER want to see the repeat of 1929 and 2008-style trashing of securities prices by reckless, vicious, concentrated short selling.
It's not important to me which version of the uptick rule is adopted but I think it is essential that there be SOME version in place before the greedy few speculators can wipe out the majority of conservative investors.