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SEC's Restrictive New Short Sale Proposal --- NOW is your only chance to influence it
- Thread starter seasideheights
- Start date
Quote from piezoe:
The one that involves only two participants is called "naked short selling". That's the one that is illegal. I would like to see the SEC enforce their own regulations for a change.
As far as I know it was banned while back. So naked short-selling is outside of the uptick rule proposal. SEC should leave alone not naked short-selling because it's identical to long-selling and it's not up for regulation.
Quote from BPtrader:
For institutions, short selling is ok without the participation of the share owners=naked short selling.
For retail traders, short selling is impossible because they get a message: Sorry, no shares available to short.
This is just one kind of UNEVEN playing fields.
It is not just market makers that are able to short without borrowing. Although they, the market makers, should be able to short without borrowing only in the course of "bona fide" market making activities as the SEC puts it. And those short positions should be closed forthwith and not be allowed to stay on the books indefinitely. It is absurd when more shares are sold short than exist, but apparently it happens!
I understand that the European markets are much better at requiring delivery, perhaps we should just follow there model.
I strongly agree with what I quoted; good stuff!Quote from Robert Weinstein:
...Firstly and this is perhaps the most important point of this debate is that all of the proposals including the one the SEC has pushed into the front is a ban ONLY on YOU. Not the market makers, Specialists, or option market makers.
So the whole idea that this is a ban on short selling is ludicrous at best and will most surely hurt (retail) day traders both long and shorts in favor of market makers.
With this so called "ban" in place the next time you want to short a stock you WILL get in line after the market makers get their fill first.
You don't short stocks and only trade to the long side? Well sorry but don't expect much of a change one way or the other. You should have no opinion that this ban will aid your trading in any way. If you do you have most likely based it on zero public evidence (I would welcome someone to show some evidence that a ban would be good for anyone OTHER than market makers)
... I think its a very scary thing to turn the clock back and allow for more manipulation by the big money on Wall St and suggest that we let the SEC know that we want to keep the playing field as level as we been able to so far get it. Don't turn yourself into a second class citizen with stocks. Ask the futures traders if having shorts is a bad thing. After all every single futures contract has a long and a short.
Robert
This is one of many ways they are trying to stop HFT abuse, but not hit all volume.
Quote from seasideheights:
The SEC has proposed new restrictive short sale rules. They're even more restrictive than a simple tick test that we had in the past. Plus, there's no talk of exemptions for ETF's.
PLEASE take a look at the rule & submit a comment at the following URL. If implemented, it will really effect trading. Your comments really do matter. The anti-shorting crowd is already commenting in full force. We need to give our input as well.
http://www.sec.gov/news/press/2009/2009-185.htm
Please pass the url of this message to your trading friends & associates.
We had major influence when the transaction tax issue came up earlier this year. We can have the same influence here as well.
Thank You.
Washington, D.C., Sept. 11, 2009 â The Securities and Exchange Commission will hold a roundtable about securities lending and short sale issues on September 29 and September 30.
http://sec.gov/news/press/2009/2009-196.htm
http://sec.gov/news/press/2009/2009-196.htm