NYSE & Uptick Rule
- Thread starter wercurna
- Start date
believe it when i see it.
where did you hear that???
http://www.isfmagazine.com/viewstory.asp?id=609
The date shows today date on the site but it was originally posted on the 24th. I have read it on several other site but this was the one I remember first.
Bsulli
The date shows today date on the site but it was originally posted on the 24th. I have read it on several other site but this was the one I remember first.
Bsulli
On the SEC website, there is a proposed rule that seems to eliminate the requirement of short-selling on an uptick or zero-plus-tick, but only for a limited number of stocks (hundreds) and only for a limited period (two years).
Look at the second paragraph of the summary: "We are also seeking comment on a temporary rule that would suspend the operation of the proposed bid test for specified liquid securities during a two-year pilot period. The temporary suspension would allow the Commission to study the effects of relatively unrestricted short selling on market volatility, price efficiency, and liquidity."
You can find the full text at http://www.sec.gov/rules/proposed/34-48709.htm
Look at the second paragraph of the summary: "We are also seeking comment on a temporary rule that would suspend the operation of the proposed bid test for specified liquid securities during a two-year pilot period. The temporary suspension would allow the Commission to study the effects of relatively unrestricted short selling on market volatility, price efficiency, and liquidity."
You can find the full text at http://www.sec.gov/rules/proposed/34-48709.htm
Yes it is going to happen...
Here is the info, and the url. http://www.sec.gov/rules/proposed/34-48709.htm
Basically it means that if the spread is .70 x .80 last print .80. you can now short .71 instead of .80 which is that NYSE uptick rule. Now it will be just like Nasdaq. Listed traders who were Naz traders are going to love this IMHO. I think pure listed traders might have a tougher time in the beginning. The one thing for sure is you can probably get away with using less bullets (unless a news story or fast mover down.)
Proposed Regulation SHO would also institute a new uniform bid test allowing short sales to be effected at a price one cent above the consolidated best bid. This test would apply to all exchange-listed securities and Nasdaq National Market System Securities (NMS Securities), wherever traded.
Banker
sounds like they may not give us the choice:
"The so-called âmarried putâ strategy, whereby a stock is bought along with a put, for the eventual purpose of going short, also looks likely to be banned too........"
One would still need a buyer to pay up a penny to get into a short with the new rule, whereas with a bullet you can hit the bid. Now, who is going to be that buyer paying up a penny while the futures and stock are cracking. Yes, it is only a penny above the best bid whereas before it was a penny above the last print, but nonetheless, there still must be a buyer will to lift your offer. Personally, I would not like to see them banning bullets and would love to see no rule at all.