SEC Seeks Comment on Alternative Uptick Rule FOR IMMEDIATE RELEASE 2009-185 Washington, D.C., Aug. 17, 2009 â The Securities and Exchange Commission today announced that it is seeking public comment on an alternative approach to short selling price test restrictions that may be more effective and easier to implement than previously proposed price test restrictions currently under consideration. The alternative uptick rule would allow short selling only at an increment above the national best bid. As a result, the Commission has determined to reopen the comment period for 30 days in order to receive input specifically on this alternative. "Today's request for additional comment is consistent with the very deliberative process of determining what is in the best interest of investors," said SEC Chairman Mary Schapiro. "We want to ensure that everyone has a full opportunity to provide their comments on this alternative uptick rule before the Commission reaches any conclusions." In April, the Commission proposed two approaches to restricting short selling. One approach would apply on a market-wide and permanent basis, and would implement short sale restrictions based on either the last sale price or the national best bid. The other approach, considered a "circuit-breaker," would apply only to a particular security during severe declines in the price of that security. Once triggered, the circuit breaker would impose a short sale halt or short sale restriction based on either the last sale price or the national best bid. Unlike proposals in April, the alternative uptick rule would not require monitoring of the sequence of bids (that is, whether the current national best bid is above or below the previous national best bid), and as a result the alternative uptick rule would be easier to monitor. It also may be possible to implement this approach more quickly and with less cost than the prior proposals. The initial comment period for the April proposals ended on June 19, 2009. The comment period will now be extended for 30 days from the date of publication of an associated notice in the Federal Register. The Commission particularly seeks comments on the alternative uptick rule as a permanent market-wide approach, as well as whether the alternative uptick rule should be combined with a circuit breaker approach.
.................................................................................. Electronic exchanges are "time stamped ownership label technology"....and should be defragmented highways that are utility type ....unencumbered by black pools....and other gaming methods.... Price discovery should be on one open exchange where either Grandma or PIMCO get the same price access on all security classes.... And should be tax free worldwide in the name of efficiency.....and available in the currency and language of choice.....globalization is impossible without this venue.... Furthermore this will be far easier to regulate with relevent practices..... And most importantly would serve as a better means to wealth distribution by merit.... ................................................................................ It is long time PAST DUE to eliminate the SEC.....which has proven over and over again....it is a FAILED institution....
1. Doesn't China already forbid short selling? 2. Didn't the Chinese stock market decline over 50% last year? The definition of insanity is doing the same thing over and over and expecting different results.
Why keep interfering with the efficient market mechanism? What does it say about the system that as soon as market discovery occurs to the downside and things turn bearish it feels it needs to intervene with bailouts and new rules? It distorts the markets role by not allowing the market to function normally in determining price. Also it wont prevent shorting because previously what occurred when these rules were active is that you would simply use a conversion or bullet or some type of circumvention to short the same as before. All that happens is that it makes it more expensive to do business. And anyone advocating LESS efficiency in this way is doing traders and the market a disservice in my opinion.
................................................................................ SS supply is simply computer tagged per issue....first come first served....equal access per direct access.... No other incumberences.... This is very simple....
the question to ask does it benefit the small trader or does it benefit Goldman? Goldman tries to ensure every rule change benefits itself. when goldman talks the sec not only listens it does.
The point is someone has to create and manage a proper exchange.... Better GS own the exchange vs the govt. If GS simply setup and managed an unencumbered securities highway whereby the bid ask was basically nonexistent....for a nominal freight....that was .... First come first served....grandma or Pimco....same access....same price discovery....no dark pools....no internal matching....not gameable......relevent and basic govt. regs.....SS unencumbered and first come first served only restricted by actual float....truly universal....all asset classes....all world securities.....24/7....language or currency of choice.....no more than 20cents per hundred units.... Let them do it.... My preference is for GS is to make public every company of significance throughout the world.....and have all govts. respect the tax free status of the universal exchange in the name of efficient capital..... And a wiki style format for information on all securities that trade on the highway..... GS would be a better manager than the govt.... GS could evolve as the "public" company generator....the highway maintainer, not manipulator.....and information generator.... Then let all individuals and managers have a free for all..... But with a level playing field.... But the "crook" portion of GS has got to go.....
These clowns did nothing about naked short selling for what.. decades maybe?.. but they are concerned about uptick rules repeatedly... they seem like powerless bureaucrats.. oh wait...
thieves in white shoes never change their character. to GS it is an entitlement or better still a birthright.