Tim Smith
senior vice president,
SunGard securities finance
There has been much debate around the possible re-introduction of a form of the uptick rule that was prepared by Jim Cramer, William Furber, Eric Oberg and Scott Rothbort and sent to the SEC. While the removal of the rule no doubt had an effect on our industry, exactly how much and what the reinstatement may mean; is where opinions differ.
I recently did a post for Sramana Mitra’s blog on the effect of the Uptick rule and if it has helped create the environment of falling stock prices that we are currently experiencing. The full post can be seen here: “How does the Uptick Rule Affect Stock Prices“.
The re-introduction of the rule will effect what happens next in trading and in particular short selling. While the statistics may not present a clear solution; the industry need to be prepared for the effect the rule may have on the securities industry. I am interested to hear your thoughts on what happens next, share your perspective on the rule and what you think it means for short selling and stocks as a whole.