NYSE & Uptick Rule

I heard tonight that NYSE is going away with the uptick rule, is this truth?

If any here have information about this please let me know if this is truly going to happen.

sludos,

 

believe it when i see it.

 

where did you hear that???

 

A friend of mine mentioned this to me. He mentioned that he had this info from reliable sources. I hope it's not truth, but my buddy was so sure about this that i decided to ask around here on ET.

wercurna

 

http://www.isfmagazine.com/viewstory.asp?id=609

The date shows today date on the site but it was originally posted on the 24th. I have read it on several other site but this was the one I remember first.

Bsulli

 

On the SEC website, there is a proposed rule that seems to eliminate the requirement of short-selling on an uptick or zero-plus-tick, but only for a limited number of stocks (hundreds) and only for a limited period (two years).

Look at the second paragraph of the summary: "We are also seeking comment on a temporary rule that would suspend the operation of the proposed bid test for specified liquid securities during a two-year pilot period. The temporary suspension would allow the Commission to study the effects of relatively unrestricted short selling on market volatility, price efficiency, and liquidity."

You can find the full text at http://www.sec.gov/rules/proposed/34-48709.htm

 

Yes it is going to happen...
Here is the info, and the url. http://www.sec.gov/rules/proposed/34-48709.htm

Basically it means that if the spread is .70 x .80 last print .80. you can now short .71 instead of .80 which is that NYSE uptick rule. Now it will be just like Nasdaq. Listed traders who were Naz traders are going to love this IMHO. I think pure listed traders might have a tougher time in the beginning. The one thing for sure is you can probably get away with using less bullets (unless a news story or fast mover down.)

Proposed Regulation SHO would also institute a new uniform bid test allowing short sales to be effected at a price one cent above the consolidated best bid. This test would apply to all exchange-listed securities and Nasdaq National Market System Securities (NMS Securities), wherever traded.

Banker

 

I don't understand why you would use bullets at all ones this happens. Can you explain this to me.

thanks,

wercurna

 

sounds like they may not give us the choice:

"The so-called ‘married put’ strategy, whereby a stock is bought along with a put, for the eventual purpose of going short, also looks likely to be banned too........"

 

One would still need a buyer to pay up a penny to get into a short with the new rule, whereas with a bullet you can hit the bid. Now, who is going to be that buyer paying up a penny while the futures and stock are cracking. Yes, it is only a penny above the best bid whereas before it was a penny above the last print, but nonetheless, there still must be a buyer will to lift your offer. Personally, I would not like to see them banning bullets and would love to see no rule at all.