Tuesday, May 5, 2009

U.S. SEC told not to revive uptick short-sale rule

According to Reuters news.

"Financial professionals, academic experts and the U.S. broker-dealer watchdog agree the Securities and Exchange Commission should not reinstate its old uptick rule to regulate short selling but disagreed on what other measures would be effective.

"The SEC is considering five proposals, including reinstating an updated version of the Depression-era uptick rule, which would only allow short sales when the last price was higher than the previous price.

"None of the SEC proposals received overwhelming support at the public meeting on Tuesday. The only thing on which experts achieved some sort of consensus was their opposition to proposed legislation that would force the SEC to reinstate its old uptick rule. ..."

Looks like nothing is going to happen anytime soon, but traders seem to be covering the shorts on certain heavily shorted stocks (here's one example, and another), just in case.


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