How might Uptick reinstatement impact Short ETFs???

[CET]

When the uptick rule was in effect previously it did not appy to ETFs. So unless they amend what was used last time it is not an issue. It is amazing that people do not know this.

 

[Rehoboth]

When the uptick rule existed, did it apply to CEF's?

 

[NERVESASTEEL]

Quote from lindq:

You may be able to easily short an ETF...or go long and UltraShort ETF...but the issue is, what happens after you enter? As the ETFs are based on the underlying indexes, and the indexes are based on the underlying equity components, if short volatility is dampened with uptick rules then your ETF will be equally impacted. So you will feel it, especially if trading short term.

Okay, so you're simply saying that the volatile moves downward in the market as a whole will be "dampened" due to this rule change. As a consequence, the leveraged Short ETFs will be impacted regardless of their success in accurately reflecting such moves on the backend.

 

[proptrader12345]

whould the uptick rule apply to the SPY????

 

[NERVESASTEEL]

Quote from proptrader12345:

whould the uptick rule apply to the SPY????

The SPY is a Long, not a Short.