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.
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.
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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