Uptick rule

drukes1234 · Mar 28, 2008

Excuse my naivety but what was the reason for the uptick rule being removed? It's pretty clear the elimination of the uptick rule has contributed significantly to the upswing in volatility, would it not make more sense to re-instate the uptick rule instead of taking the funds rate to 0%?

retire45 · Mar 28, 2008

How would would you like a downtick rule when buying? The uptick rule was never fair. You really think the uptick rule has any effect on the economy?

drukes1234 · Mar 28, 2008

It has absolutely no effect on the economy but it definitely has a profound effect on the market. I never said the uptick rule has led to the downturn in the market, I said it added to the volatility. Speaking of the economy, do you feel the fed is acting based on the economy, or the market... I think that's a pretty easy answer.

tradingmonkey · Mar 28, 2008

There were ways around the uptick rule when it was in effect..it is a non issue

retire45 · Mar 28, 2008

Good points.. However Free markets mean no:

Uptock/downtick rules
No pattern dayrader rules
No "for this sector only" Fed intervention..

If we are daft enough to put ourselves in depression worthy conditions, so be it.. People learn more from hardship than anything else..

Sorry to vent but I was just thinking of the potential loss of volatility due to the Fed putting a bottom on the Market while no one really wants to buy.. No chance though as volatility will come and go as it pleases.. always has.

gnome · Mar 28, 2008

Quote from drukes1234:

Excuse my naivety but what was the reason for the uptick rule being removed? It's pretty clear the elimination of the uptick rule has contributed significantly to the upswing in volatility, would it not make more sense to re-instate the uptick rule instead of taking the funds rate to 0%?

We still had the uptick rule when the Naz lost 78% from '00-'03.

trom · Mar 28, 2008

There was no empirical evidence that the uptick test had any positive results.

Also, like was said... It was easy to short on a down tick anyway. You could short all you wanted on a down tick simply by routing to ARCA.

BSAM · Mar 28, 2008

Quote from drukes1234:

Excuse my naivety but what was the reason for the uptick rule being removed? It's pretty clear the elimination of the uptick rule has contributed significantly to the upswing in volatility, would it not make more sense to re-instate the uptick rule instead of taking the funds rate to 0%?

(Throwing rotten tomatoes and rotten eggs......)---GET OUTTA HERE!!!

gnome · Mar 28, 2008

Quote from trom:

There was no empirical evidence that the uptick test had any positive results.

Also, like was said... It was easy to short on a down tick anyway. You could short all you wanted on a down tick simply by routing to ARCA.

I don't trade ETFs, but haven't you always been able to short them on a downtick? And stock index futures can be shorted on downtick with leverage.

Bringing back the downtick rule wouldn't change anything of significance.

Cheese · Mar 28, 2008

Quote from drukes1234:

Excuse my naivety but what was the reason for the uptick rule being removed? It's pretty clear the elimination of the uptick rule has contributed significantly to the upswing in volatility, would it not make more sense to re-instate the uptick rule instead of taking the funds rate to 0%?

While you may argue that, I submit that instead it is the increased scale of uncertainty over recent months which raised the levels of volatility. I certainly welcome continued high volatility because of the increased scale of trading profits which it facilitates.