How is possible to avoid uptick rule in a stock dropping >10%?

[piyayo]

Hi fellows,

All the props that I know don´t allow you to short at Bid if a stock is dropping more than 10%, but I´ve seen many videos of different people shorting a stock at the Bid even if the stock is dropping more than 10%.

How can they do that?. Watch minute 0.19 in the video below. The stock is more than 25% down and that guy shorts 4000 at bid.

I´ve noticed that few of them route the order to CFDR, is that the key?

Do you have any advantage if you are in a broker/clearer that have that stocks (some other clients or funds accounts), so you could short it beacuse "is not considered a short because the broker/clearer has them"?

Any information will be very wellcome.

 

[arna]

I've been using dark pools and some smart routers that seek liquudity even on bid. Not 100% fill ratio but anyway most of the time I have no problem with that.

I hooe one day this rule will be disable.

 

[zdreg]

I've been using dark pools and some smart routers that seek liquudity even on bid. Not 100% fill ratio but anyway most of the time I have no problem with that.

I hooe one day this rule will be disable.

lots of luck on that idea. the securities industry is fighting to get the uptick rule reinstated.

 

[piyayo]

Hi @arna ,

Could you please give me more information about those dark pools? here or in PM.

Is CFDR one of those?

Do you mean that dark pools are not under the uptick rule?

Thanks!

 

[arna]

They are under I think. But dark pools ane routers seeks liquidity on many different venues.

Some that I used are inhouse routers.
Some examples
NITE
ATMID

 

[arna]

Any more info about that?

lots of luck on that idea. the securities industry is fighting to get the uptick rule reinstated.

 

[zdreg]

Any more info about that?

no time table.

 

[MagicMike]

Could you please give me more information about those dark pools? here or in PM.

They generally fill orders at the midpoint between bid and ask, short or otherwise.

So yeah, you can see plenty of short selling in dark pools even on >10% down days. Look at examples of dark pool volume and short composition on https://squeezemetrics.com -- 30-day free trial. More than you'll need to get the idea.