I read the news and found it sounds very similar to the previous "bid test rule" for nasdaq, are they the same? Can anyone of your guys tell me sth about the content of the rule?
still hasnt been passed yet. lets hope this bull market puts the uptick rule on the back burner. if it is passed, it will take 3-6 months before it goes into effect (I heard the technology is the main reason it would take some time to intergrate everything)
The original uptick rule was created in 1938 and permitted short sales only after a stock price increase. The rule became obsolete and was repealed in 2007 due, in part, to the advent of decimalization and a study that concluded the rule had little impact on short sales. Although a bill has been proposed that would essentially bring back the old uptick rule, the more likely outcome is implementation of a modified rule as proposed by the Exchanges. The Exchange rule would require short sellers to post a quote at a price higher than the prevailing national bid. However, the proposal would also require a Circuit Breaker to trigger its provisions. That is, the requisite uptick bid would only apply after a stock price has dropped precipitously (about 10%).