IB requirement for uptick for short ETF

R

richk

Hello,

I have in my mind that ETFs are shortable without uptick rule.
I had problems with shorting HHH by IB account yesterday so I asked support for help and I received this reply:

Dear Trader,

All short orders placed through IB will require an uptick to
execute.
I apologize if you did not know that.

If you have any further questions, please feel free to contact us
again.

Regards,

JohnW
IB Customer Service
More...
Does it means that Ib requires something different then other brokerages for shorting ETFs, or rules chenged for short ETF on uptick or what ? Have any other same experiences ?
Should I move to another broker with better executions for ETF shorting ?
 
The uptick rule is an SEC requirement, and it does not apply to broad-based composites (i.e. with ten or more components).

I was not aware that IB requires an uptick for shorting ETFs. If that is true, it is probably a limitation of their software. I know other brokers have had such limitations in the past, but I would have thought all such problems had been fixed years ago.
 
Another reply, I cannot believe.

Dear Trader,

As I have indicated to you in order to short a stock through IB's
system
you will be required to have an uptick regardless of any other
rules.
I work on the trade desk and handle trade problems and inquiries
such
as yours so this is the department to get the correct answer .

If you have any further questions, please feel free to contact us
again.

Regards,

JohnW
IB Customer Service
More...
 
How are you routing the order? For example, if you place a limit order to sell at the bid and route the order to AMEX, IB's software isn't going to have anything to do with whether or not the order is executed. They will send the order to AMEX and they'll execute it at the bid if no uptick is required.
 
Quote from Hurricane:

How are you routing the order? For example, if you place a limit order to sell at the bid and route the order to AMEX, IB's software isn't going to have anything to do with whether or not the order is executed. They will send the order to AMEX and they'll execute it at the bid if no uptick is required.
More...

I used SMART routing.
Do you think that it could have sense to use direct routing instead of SMART routing?
 
If this is true this would be absolutely ridiculous and cause to leave IB. ETF's are great vehicles for shorts with no uptick rule, IB software can not possibly get into the way. Only a frigging moron programmer could come up with that, I am starting to believe this company is being run by freaking programmers!!

I URGE IB TO FIX THAT SOFTWARE BUG!
 
Quote from Kicking:

If this is true this would be absolutely ridiculous and cause to leave IB. ETF's are great vehicles for shorts with no uptick rule, IB software can not possibly get into the way.
More...

IB software does not "get into the way". It knows that most ETFs CAN be shorted on downtick. There are a few exceptions, e.g. BHH, HHH.
 
So no uptick for QQQ, SPY, DIA and SMH but uptick for others like HHH, BHH ? I was told uptick for everything at IB. We would like to know.
 
Quote from Kicking:

So no uptick for QQQ, SPY, DIA and SMH but uptick for others like HHH, BHH ? I was told uptick for everything at IB. We would like to know.
More...


IB software does not "get into the way". It knows that most ETFs CAN be shorted on downtick. There are a few exceptions, e.g. BHH, HHH. (You were given wrong information by the help-desk).
 
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