I haven't been daytrading stocks that much lately. Out of curiosity, does the short sale rule exist for nyse and nasdaq stocks? Also, what happened to the american stock exchange?
What "short sale rule" were you referring to? In 1998, the NASDAQ merged with the American Stock Exchange, which mostly traded options and derivatives, creating the NASDAQ-AMEX Market Group. The combined company still operates as two separate exchanges, but is better able to compete with the NYSE.
The American Stock Exchange was bought by NYSE: http://www.nyse.com/attachment/amex_landing.htm The uptick rule for short sales has been eliminated, but some people want it reinstated.
Below is an email from ProShares regarding the impact of the rule on their Short products such as the SKF: Thank you for your email regarding ProShares. Any new uptick rule would first have to be approved by the SEC, then proposed for public comment, then finalized. Accordingly, until any rule is finalized, the impact on the management of our funds canât be known. It is important to note that we may get our short exposure, not from shorting stocks, but from financial instruments, including swap agreements. When a swap counterparty has entered into a swap agreement with us, the swap counterparty decides whether or not it needs to hedge its exposureâand engaging in short selling of a stock is only one of several ways they may accomplish this. If you would like to further discuss our products, please call us at #1-866-776-5125 and one of our Registered Representatives will be happy to assist you. Sincerely, Maureen Goff ProShares® Shareholder Services