To avoid the downward pressure on stock prices, the uptick rule
(the last price before shorting must not be below the previous price) can be implemented.
The Uptick Rule
was, however, abandoned in July 2007 after much study, being seen as unnecessary and impeding market quality.
For example, when the SEC launched the repeal of its off-board trading bar, (7) and also when it considered eliminating the uptick rule
for short selling, (8) it did so on a limited basis that permitted evidence of costs and benefits to be gathered.
Down Royal has a tricky look to it but Uptick Rule
can get punters off to good start in the maiden hurdle (1.
Rule 201, which replaced the previous uptick rule
that was repealed in 2007, became fully effective on February 28, 2011.
As an alternative, he pointed out at that time that "two more simple acts would have completed the rescue without costing the taxpayers one dollar: an announcement from the Federal Reserve that it will be lender of last resort to all depository institutions including money market funds, and an announcement reinstating the uptick rule
In the ensuing chapters, Pozen writes at length and in considerable detail about problems with credit default swaps, executive compensation, the Troubled Asset Relief Program, the FDIC, the nature of asset bubbles and crashes, the need for globally integrated accounting standards, the need to deal with liquidity risk, problems with toxic assets, accounting issues such as fair market value and the uptick rule
, the need to increase U.
Around 10% of all equity trading volumes in Japan are short sales, but PTSs do not currently support the uptick rule
imposed by Japan's regulator, the Financial Services Agency (FSA) -- which prohibits short selling "at prices no higher than the latest market price" -- and so cannot execute this business.
Short-selling on the Athens bourse must still meet an uptick rule
and be flagged.
This alternative uptick rule
is designed to restrict short selling from further driving down the price of a stock that has dropped more than 10 per cent in one day.
Given the time required for finalization of regulatory framework for introduction of margin financing and securities lending and borrowing mechanism, in the interim SECP principally agreed to the following proposals of the Exchange: Uptick rule
for blank sale in Deliverable Futures Market (DFM) to be abolished; Threshold for blank sale on UIN basis in DFM to be revised to 0.
to the SEC's recent decision to abolish the uptick rule
" (32); "c[an] safely be suspended permanently" (33); and "removal of the uptick rule
makes short selling a more effective tool for keeping prices in line with their efficient values.