Wednesday, April 8, 2009

Restoring the "Uptick" Rule?

(Bloomberg News, April 8) SEC Weighs Short-Sale Limits. Bloomberg interviews former SEC Counsel Peter Chepucavage. He urges Congress to locate the loopholes. He discusses the "Uptick Rules" proceedings and refers it a diversionary tactic - suggests that "Circuit Breaker" and "Uptick Rules" are not the solution.

In a 5-0 decision, the U.S. Securities and Exchange Commission decided to revisit a Depression-era rule that limits short selling in a down market. However, comments from the agency's two Republican commissioners indicate the proposal is not likely to sail through. Commissioner Troy Paredes said restrictions on naked short selling along with other rules might be enough. Commissioner Kathleen Casey said she is not convinced that repealing the uptick rule contributed to the market turmoil of last year.

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