We are arguining back and forth but no one will win because we don't really have hard data to support either side. I would love to see data on these stocks that tanked 50% in minutes. How many shares were sold in that short timeframe, and how many shares were shorted? Thats all you need to end this argument.
They love the uptick rule and want it back because it gives them an enormous advantage over customers. That makes the fact that Joe Retail Dude is begging and pleading to get it back especially hilarious.
specialists are for all intents and purposes extinct. further, they could give a shit what the retail guy is doing. they only care about large orders.
fair enough. Although, he wasn't asking whether or not specialists are on the endangered species list. He was asking what they think. He also didn't ask if they cared about the retail guy (when have they ever?). <i>Of those who are still around and give a crap</i>, they like the uptick rule. It doesn't bother them on the large orders, but it does give them significant advantage in thinly traded stocks. The NYSE has been gunning for the uptick rule ever since it was abolished.
You guys are totally forgetting about the equity derivative trading desks that are doing HUGE program trades ( baskets ) of stock for themselves and customers, some of which is done in a facilitory capacity ( principal vs agency trades ). One push of a button on a Sun Workstation and millions of shares of stock are executed. I would suggest that these parties are totally against bringing the "uptick" rule back.
lol, forget about reinstating the uptick rule, lets have the new and improved 5-uptick rule that I heard suggested numerous times during the worst of the market meltdown in October. What kind of a killing could professional traders make with that? Set up a conversion on a couple of trading stocks, and be able to sell whenever you please, while all the guys who wished they could get a fill just sit there with their hands in their pockets. Sounds like a new "golden age" of scalping to me.
he was obviously also including market markers on nasdaq etc. in addition he was also including hedge funds who were exempt from the uptick rule for basket execution under certain circumstances. hedge funds also don't like the little guys stepping in front of them.why do u think cramer , najarian and the rest of the crew are in favor of uptick rule. professionals will either get an exemption or a work around which will work to disadvantage of the small trader. it is an old story. the club still exists in 1 form or another.
Yep, a 5-uptick rule is an especially brilliant suggestion given how many stocks trading $35 or higher are now trading around $2, or $1.