Modified Uptick Rule

Discussion in 'Trading' started by libertad, Mar 24, 2009.

  1. So would this mean you could only short when the price is above the bid or would that only kick in under the circuit breaker they mention (I think it was a 10% decline)?

  2. sprstpd


    Wow, the uptick rule lunacy gets even crazier. I opposed the uptick rule being reinstated and I *really* oppose this modified uptick rule being enacted. What garbage.
  3. This is what happens when you have a POS Chairman of the SEC by the name of Christopher Cox. The Regulation "pendulum" swings the other way . . .
  4. Actually, this is what happens after every bear market.

    Remember the 25K PDT rule? Just more stupidity..
  5. I do like the 10% idea though. If they need to re-install that damn rule, then that 10% is a good way of easing the pain for us
  6. It looks fine to me. I like that it won't even be active unless the 10% circuit breaker is hit. This allows the market to trade normally except in panics.

    I remember right after the uptick rule was removed, the market had a final short squeeze, then volatility expanded, and selling pressure flooded into the markets. All my indicators that used market breadth data had to be re-calibrated due to the large selling pressure. The market started trading very differently from then on. There were wild swings due to the expanding range of volatility.
  7. This 10% circuit breaker type thingy sounds like a good idea.

  8. Rice,

    That is exactly when the subprime loss news started to hit the market.

    July of '07.

    The increased vol and selling was due to that.
  9. LOL I hope you're joking.

    Uptick rule creates more volatility, but of course, you and the others would know that if you ever traded with it active.

    Anybody who is a real trader would want the uptick rule back. It creates opportunity.

    It's even funnier that BATS would say anything as they gain business with the uptick rule active. Apparently, they are run by morons, no wonder that ECN never gained any real prominence.
    #10     Mar 24, 2009