Ok, I'm positive I know the answer to this question, but I would still like to hear other's comments and any similar stories. Echotrade is insisting that short sales of SPY have to be marked as 'short sales' and that shorts cannot be initiated with a straight sell. They also say that even if you bought a bullet and sold it, it's still wrong, since the exchange says that shorts have to be marked as such for tracking purposes. A good friend of mine was informed he'd be getting nailed with short sale violations for shorting SPY with sell orders today. Now am I missing something here, or is this just messed up? Any monkey knows that there is no uptick rule in the ETFs. I confirmed that it's not this way at Andover, and the "exchange rule" thing sounds kind of wierd too.