August 14, 2008
The elimination of the Plus Tik Rule was one of the worst decisions made by the SEC . This rule was enacted after the 1929 Crash to stop pool operators from driving down a stock by shorting it on a continuing basis. It was argued by the SEC staff that the elimination of the PLUS TIK Rule would increase liquidity. All it did was to help hedge fund operators to act as pool operators from the 1920s. The Rule should be reinstated and the SEC should investigate the activities of naked short sellers who have manipulated many stocks.