Suspension of Up Tick Rule

TradeTheFunk · Mar 14, 2004

Quote from cuz:

Mecro................Tradethe Funk is right..................you can hit bids on Arca all day long...................Remember they are their own exchange now and have their own rules.
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Exactly. Being their own exchange is the key.

hoodooman · Mar 14, 2004

I'm confused. Are you saying that you can short on a down tick or arca?

cuz · Mar 14, 2004

Quote from 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.
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Just use this function wisely, cuz remember you will pay higher commish on top of what you are already paying for removing liquidity. As you would in any case.

See www.tradearca.com for exchange fees/rebates

Later
Cuz

cuz · Mar 14, 2004

Quote from hoodooman:

I'm confused. Are you saying that you can short on a down tick or arca?
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YES

hoodooman · Mar 14, 2004

Thanks for the reply, Cuz. Will try it tomorrow.

gamalruach · Mar 15, 2004

Quote from 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.
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We ain't got no uptick rule here in tradin forex.

ehk ehk ehk...

We can short any currency even if it is falling 3000 points in 10 seconds!

Ahh... bliss.

You guys usually see 100 point moves in a bat of an eye? At anywhere between $1 and $100 commonly per point - ain't a bad way to make money.

Sam

C Robinson · Mar 15, 2004

they we're discussing 300 nyse stocks....but i hear that has been shelved. supposedly, the actual companies were very opposed to being part of the test group. so i guess we shouldn't hold our breath.