Cox should be hanged for X the uptick rule

Quote from liulala:

A simple question to Cox:

Which side are you on?

investors or hedge fund

and what is the mission of SEC?
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Umm u mean...

CEO's or Hedge Funds.
 
Help me understand how the "pro's" were able to abuse the recently departed uptick rule. What exactly were they able to do that they can't still do now?
 
uptick rule means you cannot short in a downtrend.

you can't short or sell at ask when the price is going down.




Quote from Anaconda:

And neither of you are traders or have any experience with the uptick rule.

Lot more manipulation with the uptick rule in place. That's why it was created in the first place, create innefficiencies for the pros to take advantage of.
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uptick rule is not needed in bull markets but in illiquid markets you need the uptick rule from professionals shorts who are hedged with options etc taking liquidity from the market causing price to decline further.


Quote from liulala:

Restore the Uptick Rule, Restore Confidence

http://online.wsj.com/article/SB122878208553589809.html

By CHARLES R. SCHWAB
The last time the stock market suffered from extreme volatility and risk of market manipulation as severe as we are experiencing today, our grandparents' generation stepped up to the plate and instituted the uptick rule. That was 1938. For nearly 70 years average investors benefited immensely from that one simple stabilizing act.

Unfortunately, in a shortsighted move, the Securities and Exchange Commission (SEC) eliminated the rule in July 2007, just as we were about to need it most. Investors have now been whipsawed by what appears to be manipulative trading, what we used to call "bear raids," which drive stock prices down without warning and at breakneck speed. Average investors feel the deck is stacked against them and are losing confidence in the markets.

For the sake of our children and grandchildren, and to avoid a needless future repeat of a bad situation, it is time to restore the uptick rule.

The uptick rule may seem far from a kitchen-table




I agree 100% with Mr. Schwab
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Quote from tradersboredom:

uptick rule means you cannot short in a downtrend.

you can't short or sell at ask when the price is going down.
More...

The uptick rule does not prevent anybody from shorting in a downtrend... it just means that before you can short, you need 1 puny, measly, little uptick first. You know how many upticks you get in a downtrend? Just as many downticks as you get in an uptrend.

I traded back in the days of the uptick rule and I can tell you with absolute certainty that the only people who were inconvenienced by this rule was Joe Blow the Average Retail Trader. Anyone who knew anything at all about the markets that was interested in shorting, would either box against their account, put on a conversion, or pick up a bullet. If you walked into any prop shop like Echo or Bright I guarantee you couldn't find very many traders that needed to wait for an uptick to put on their shorts.

The idea that the regulatory agencies add and remove these rules to protect the public interest is a little far fetched IMHO... most of the time they're designed to further exploit the advantages and edges that the professional traders have over the retail traders.
 
Quote from liulala:

A simple question to Cox:

Which side are you on?

investors or hedge fund

and what is the mission of SEC?
More...

The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation

http://www.sec.gov/about/whatwedo.shtml

There are many ways of creating synthetic shorts. At the time when the uptick rule was enforced, many prop traders were using conversion, and other methods to short without uptick. The uptick rule was unfair to retail investors. It created an competitive edge to institutions and prop traders.

It is naive to think that uptick rule can stop hedge funds or prop traders from shorting.

SEC mission is NOT to force the stock market to go up. The market should find its own fair market price, no matter how low it is. Period!!!
 
the uptick rule was a great way to see if a trader was holding up his bid and whacking everything under it, you cant do that now with regnms, but if you really wanted to get short on a downtick just cross the market with arca and bamm you put on a short no questions asked, no need to wait for an uptick
 
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