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Cox raised the issue at a July House Financial Services Committee hearing: "Should
there be a test that does work?" Cox asked at the hearing. "Should
there be something that is meaningful? If it can't be a tick because a
tick is now just a penny, and even when a stock is dropping like a
stone it tends to drop with penny upticks along the way, is there a
price test that could work with an increment of a nickel or a dime or
what have you?" Instead of reinstating the uptick rule
outright for all corporations, the agency is also contemplating whether
it will narrow its focus and require a nickel or dime restriction only
during certain periods of market volatility or for a sector or group of
companies. A five-cent tick rule would certainly have an
impact on liquidity, but with companies like Fannie Mae and Freddie Mac
in free-fall (Fannie Mae is down to $4.85 a share, while Freddie Mac
traded late Thursday at $3.16 a share), the pressure is on Cox to limit
some short selling, particularly naked short selling, the practice of
selling shares short without arranging to borrow the securities up
front. Ron Orol is a Washington-based reporter for The Deal and author of Extreme Value Hedging: How Activist Hedge Fund Managers Are Taking on the World. CategoriesComments
From: One Guy,
Chris Cox is a partner of the wall street crime syndicate. Hehelped them in manipulating the market by removing the uptick rule and allowing naked short selling by just locating a share instead of borrowing it.
Posted on:
August 21, 2008 9:31 PM
From: jksinvest,
How many more financial institutions will have to go out of business before these theives are stopped. What is the SEC thinking to allow the ease of destruction with Naked Shorts and no uptick. This is Madness.
Posted on:
September 9, 2008 9:06 AM
From: Brewster,
The removal of the uptick rule is truly madness, jksinvest. As if a conspiracy were in place ahead of the bear market to insure these waterfall moves down. The uptick rule must be reinstated to help restore some sense of sanity.
Posted on:
September 9, 2008 4:39 PM
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A lot
more than four cents, when it comes to naked short selling. Securities
and Exchange Commission chairman Christopher Cox may be seeking to
revive a version of the now-defunct "uptick" rule, which was eliminated
in 2007, freeing short sellers from the prohibition against selling
stocks unless its price ticks up by a penny or more first. The agency
is considering a more severe uptick rule that could block short selling
of a stock unless its price ticks up a nickel or even a dime and more.
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Chris Cox is a idiot. Why did he relax this rule in 2007....Maybe we should check his portfolio and see what his short positions are!!!