Suspension of Up Tick Rule

Discussion in 'Trading' started by daliddleguy, Mar 14, 2004.

  1. Living in Europe I miss a lot of US financial news. There has been a proposal to suspend the up tick rule on several hundred stocks as an experiment.

    Is this going ahead, and when??
  2. i think that was something with a few large cap companies but i don't remember the details
  3. Mecro


    This rumor has been going round for way too long. The experimental rule was supposed to be enacted in January. I'm dying for it to happen, but I'm slowly realizing that NYSE & SEC would never actually do that because it would actually allow traders to get short as easily as it is to get long. Specialists abuse the shit out of the uptick rule, running down prices 20 cents on a measly shorts (as little as 1000 shares sometimes). Most of the time, getting filled short on NYSE becomes a pain in the ass.

    As far as I know, NYSE & Naz are the only markets where the uptick rule exists. It is truly sad and pathetic, these are the biggest equity markets in the world. Even when the Russian stock market originated, there was no such thing as an uptick rule. Imagine how fragile that market was (and possibly still is), yet there were no problems of bear raiders.

    Uptick rule is a bullshit and outdated rule. It's not the 1930s anymore. Only reason this rule still stands is for the simple abuses of specialists and MMs. Bullets allowed traders to get short like the rest of the world does so the SEC had to ban bullets.
  4. Mecro

    Have you ever tried using the Arca Mkt Sell key. Forget Listed, I am talking about the old Nasdaq. If you are not fa,iliar with what I am talking about, the go sell a liguid Nas stock like CSCO or DELL using ARCA MARKET SELL.

    Let me know what happens?

  5. Mecro


    I know that with the use of ECNs does alleviate getting short. And getting short Naz is easier than NYSE thanks to more common ECN use.

    It still does not change the effect of the uptick rule when you need to get short.
  6. and the 300 stocks should be announced any day now
  7. Are you absolutely 100% sure about that statement. Have you tried to short a downtick in a high Vol Nas stock Lately.
  8. I will believe this when, and only when, I short on a down tick and don't get a nasty gram from the office.

  9. Mecro


    First of all I do not trade Nazdaq (not yet at least) but I am fully aware of the rules. The ECNs, for Nazdaq high vol ONLY, provide such liquidity that it is possible to easily get short in most situations. But try getting short in a stock that is free falling or getting sold off.
    I hear that Island does not care about uptick or downtick so supposedely you can short anyway you want on that ECN. I'm not sure about the liquidity on there though

    A buyer on a downtick is still a buyer and a short on a downtick is still a seller. The uptick rule impedes on that liquidity. I can't believe the SEC even has to consider whether to abolish it. I guess the specialists rely too much on running down a traders' short, lifting it and then running the price up 30 cents on 100 share upticks. Makes sense why they had to take away bullets from traders.
  10. cuz


    Mecro................Tradethe Funk is can hit bids on Arca all day long...................Remember they are their own exchange now and have their own rules.
    #10     Mar 14, 2004