The Beginning of Massive Securities Regulation is Upon us

Discussion in 'Wall St. News' started by flytiger, Jul 16, 2008.

  1. Pressure rises to bring back uptick rule
    Legislation introduced to make short selling more difficult again
    By Alistair Barr, MarketWatch
    Last update: 2:49 p.m. EDT July 16, 2008
    SAN FRANCISCO (MarketWatch) - Pressure is rising to bring back a rule that would make betting against the stock market more difficult in the wake of a damaging swoon in equity prices over the past month.
    Rep. Gary Ackerman, D-NY, a member of the House Financial Services Committee, introduced legislation on Wednesday that would reinstate the so-called uptick rule.
    In a typical short sale, traders sell borrowed shares, hoping to buy them back at a lower price and return them to the lender. The difference is kept as profit. The uptick rule used to require that traders wait until stocks rise before adding to short positions. It was introduced in 1938 in the wake of the stock market plunge that accompanied the Great Depression.
    The Securities and Exchange Commission rescinded the rule in July 2007. That coincided with the start of the mortgage-fueled credit crunch. The Dow Jones Industrial Average has slumped 17% since the beginning of last July. That's sparked debate about whether dropping the uptick rule has triggered more aggressive shorting.
    Ackerman said on Wednesday that his bill mandates that the SEC reinstate the uptick rule within 90 days of the legislation's passage.
    "In the wake of the elimination of the uptick rule, many volatile stocks that the regulation was designed to protect are being driven down as a result of manipulative short sale practices," said Ackerman in a statement. "Reinstatement of the uptick rule would help curb these abuses and ensure greater stability and confidence in the market."
  2. bdon


    You do realize the uptick was created during the depression to prevent another crash like 1929. Why should shitbirds be able to 100 share tick out of thin stocks all day. I do think the rule is a waste in stocks that do appropriate volume but, the fact remains, anyone can make money long or short with sound skills. If no uptick rule is the only reason you can make money, then I'm guessing you can't make too much to begin with and good riddance to you once the rule comes back.

    The uptick rule, the 5 cent rule that existed along with the specialist all helped provide better balance to trading then were seeing now. The nasdaq was always more volatile then the nyse and now look at the mess we have by pushing for all electronic trading. All so goldman and the nyse could earn a few extra pennies a share by clearing a few more trades.

    Faster isn't always better. How many trades out there are truely wash trades with liquity rebates that outweigh the commision costs and should be deemed illegal. We need more regulation. All because Dick Grasso was overpaid, we deregulated the nyse to the point where its a bit of joke.
  3. Flytiger probably had an orgasm over that news report.
  4. You are right Bdon. If you can see out of one eye, why do you need the other.:eek:
  5. bdon


    Hey guy theres always going to be new rules, but you have to be able to work with them. one trick ponies come and go, year after year in this business. If you live in fear of rule changes then your mental state can't be nearly strong enough to recover from a significant drawdown.

    Adapt or Die.

  6. hahahahahahaha....some of us go to porn sites ; he goes to REG SHO list....hahahahahaha

    Flytiger ... " Look at the size of that list, wow"...:D
  7. my point was not whether or not the uptick rule is good or bad. It is bad, in my opinion. And as I have said before, it makes my life easier. But I short 2,000. Cohen shorts 200,000.

    My point was, my nubile wannabes, look who is proposing the change. Is it the Regulators, who supposedly are in charge of such? No, It is a NY Legislator.

    Now quick. Wash for supper. Mommy will call you soon.

    Oh, 591 names on the porn list today. Really, not a bad name for it.

    Now get ready to go find real jobs.
  8. i disagree, shorting is much faster down..cause their is nobody on the bid. only the market maker and market maker ain't going to hold to those shares..he'll dump it.

    it harder to go up because there is always more shares than cash in the market. shares can be printed or borrowed. everybody is on margin.

    as for crashes, the stocks would crash just slower and

    'shorts just can't profit from a decline in price.'

    it tougher to make money with the uptick rule. the ask is never sold.

  9. you won't be able to short 2000 shares on the bid.

    futures /nasdaq doesn't have uptick rule.

  10. cox today said, all talk about lack of an uptick rule is a bunch of dung.

    its not coming back if the sec has any say.
    #10     Jul 16, 2008