Oct. 2, critics of the markets have called for a return to the up-tick rule.
There should also be a ban on naked shorting and the up-tick rule needs to return.
The up-tick rule once only permitted short sales of a stock if a stock price was rising.
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The revival of some form of the so-called "up-tick rule" is under consideration, says NYSE Euronext Chief Executive Duncan Niederauer.
Many critics of the SEC have called for the restoration of that up-tick rule as a better solution to the problem.
Mr. Cooperman also has some pointers on how to handle Wall Street: reinstate the up-tick rule for short sellers and get rid of high frequency traders.
And while they're at it, they should restore the stock up-tick rule for shorting equities--that is, no short selling of a stock unless the price has moved up.
The up-tick rule, eliminated last July at the beginning of the market meltdown, forced traders to wait until a stock price ticked up before putting on a short sale.
The SEC's extension Wednesday was silent, however, on the issue of the up-tick rule, which was a rule abolished last year that forced traders to wait for a stock to tick up before shorting it.
Knight Capital general counsel Leonard Amoruso asks how the individual stock circuit breakers will interact with market-wide circuit breakers, a newly adopted up-tick rule for short sellers and internal circuit breakers imposed by NYSE Euronext and Nasdaq.
The focus in the options market for us is that any tick rule, any situation where you would limit the ability to sell short, needs to be exempted for the options market makers--those professionals that provide liquidity into the market place.
Another problem, of course, is the elimination of the "up-tick" rule, a controversial SEC rule change last July (well-timed to the beginning of the credit market meltdown) that removed the rule that short-selling could only be done when a stock was rising.
The current proposal would go further than the prior rule by eliminating "zero plus" tick short sales, which is when the stock trades flat after a prior uptick.
Many also want a return of the so-called uptick rule, in which a short sale could only be put on after a tick up in the price of the targeted stock.
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