On June 28 the Securities and Exchange Commission (SEC) adopted a rule, Release No. 35-55970, effective July 3, 2007 which eliminated the requirement that short sales of stocks could only be made after an uptick, that is, after the price rose on the last sale. That rule was put into effect after the stock market crash of 1929 to make it harder for traders to accelerate a rapidly falling market.
With hedge funds and other automated trading systems adding volatility to the market, it seems insane that elimination 0f short sales on uptick rule be made now.
Via The Wall Street Journal 9/10/07
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment