Shorting QQQ....AMEX vs. NYSE

Discussion in 'Trading' started by DATTrader, Mar 6, 2002.

  1. someone had asked on another thread about software functionality and the inability to short Q's on a downtick (using that software).

    The question raises an issue I have pondered but never asked anyone else. The uptick rule, though its concept was created by the SEC, is set by each exchange. Obviously the uptick rule for the NYSE and the Naz are different. However the QQQ's are a trading instrument created by the AMEX, and the AMEX has not required an uptick for short sales like the other exchanges.

    So the question is, now that the Q's are trading on the NYSE as well, if you go to short Q's via the NYSE then why is there not an uptick requirement since I thought it was a requirement of the exchange rather than a function of what stock is being shorted?
  2. The QQQs and other ETFs were granted a "no action" letter by the SEC. This allows them to be shorted on a downtick. In addition, it doesn't matter where they trade (AMEX, NYSE, or a regional).

    Normal uptick rules apply for other AMEX and NYSE issues.
  3. This is due the QQQ being an index and other ETF with a large part of their volume comes from hedging and arbitrage with the futures

  4. EOM