Nasdaq short rule

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123456789

What is the exact rule for shorting NASDAQ stocks.

I was told by an options marketmaker that there is not a shorting rule for NASDAQ stocks. Ie you can short any bid.

I maintain it must be at least an uptick bid or someone buying the offer to short NASDAQ stocks.

Maybe we are both right...is there is an exemption for option marketmakers?
 
Quote from 123456789:

What is the exact rule for shorting NASDAQ stocks.

I was told by an options marketmaker that there is not a shorting rule for NASDAQ stocks. Ie you can short any bid.

I maintain it must be at least an uptick bid or someone buying the offer to short NASDAQ stocks.

Maybe we are both right...is there is an exemption for option marketmakers?
More...


surprised that "123456789" name wasnt taken yet...
 
First check the Reg SHO pilot list. If the stock is on it you may get short without regard to bid-test. Additionally, ARCA is exempt from the bid-test for OTC names within their own book, so that is another option.

If neither of these options are available, then you will need to wait for an up-bid. Reg SHO however will soon eliminate this across the board.
 
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