Uptick Rule To Be Restored?

[Rod]

DOW JONES NEWSWIRES, 10 Mar 09

DJ Source: SEC May Consider Reviving Uptick Rule -CNBC

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DOW JONES NEWSWIRES


The Securities and Exchange Commission may consider restoring the "uptick rule" - a requirement that investors wait until a company's stock rises before it can be sold short - at a meeting in early April, CNBC reported Tuesday, citing a person close to the agency.

Bringing back the rule, which expired in July 2007, would begin with a proposal from at least one of the SEC's five members. The measure would then be subject to public comment, after which the full commission could vote on it.

Earlier in the day, stocks rose on news that Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, had told reporters that he expected the uptick rule would be restored within about a month, Reuters reported.

Web site: www.cnbc.com


-Dow Jones Newswires; 201-938-5500


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Rod

 

[Silverbird]

By: Reuters | 13 Mar 2009 | 04:50 PM ET

The Financial Accounting Standards Board is planning to discuss mark-to- market accounting rules on Monday.
The FASB says it will discuss "additional application guidance that would clarify" how mark-to-market is used in illiquid markets.
On Thursday, U.S. lawmakers told the top U.S. accounting rulemaker to deliver new guidance on mark-to-market accounting within three weeks, or face legislation changing the rule that has forced banks to write down billions of dollars in assets.......

http://www.cnbc.com/id/29682302

 

[Racovius]

yea, dosen't really affect the TSP'ers much though. Short selling itself should be banned. Selling what you don't own, is akin to stealing.

 

[James48843]

yea, dosen't really affect the TSP'ers much though. Short selling itself should be banned. Selling what you don't own, is akin to stealing.

It DOES have some effect on TSP-

1. TSP "Loans" some stock out for others to short. TSP makes millions in income from loaning out shares to other brokers.

2. The lack of an uptick rule created huge volatility in the markets in general, thereby driving down the prices of some stocks, and taking out value overall.


We need the uptick rule as both a calmer of markets, and a check against unbridled greed that has caused some stocks in the indexes to plunge out of existence.

The uptick rule is good, and needed.