Uptick rule is considered by SEC, again

Reuters reports that The Securities and Exchange Commission said it will meet on April 8 to consider whether to propose “short sale price test rules,” which could include reinstating the so-called “uptick rule”. The S.E.C. issued a brief agenda for the meeting, but did not provide details on what it might propose. An agency spokesman said later on Friday the commission will consider whether to propose reinstating the uptick rule or a different price test.

In late July and early August, short sellers had to show they had pre-borrowed stock before making short trades in 19 financial stocks for 30 days. A temporary ban on short-selling in hundreds of companies followed, but expired in October. The ban of short selling sent the Market up temporily. But after that, the DOW touched 7500 in November.

Many experts judged the measures ineffective. Then-S.E.C. Chairman Christopher Cox later said he had some regrets over the emergency measures. At the time there were calls for reinstating the uptick rule.

Mr. Cox’s successor, Mary Schapiro, said earlier this week that the agency aimed to issue a proposal in April to restore the uptick rule. She also said the SEC will look at other ways to address short-selling in the stock market. But the S.E.C. said any proposal would likely be subject to a public comment period. That could mean a final rule is months away, Reuters said.

So it is not that fast to have an uptick rule. It looks like the Obama administration really does everything to stimulate the market.