It appears to be time to go back to the old ways.
In his congressional testimony, Federal Reserve Chairman Ben Bernanke said
the Securities and Exchange Commission was looking at restoring the uptick rule
-- a prohibition on short-selling while a stock is declining.
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During a question and answer session with the House Financial Services Committee, Bernanke said that the rule "may have had some benefit"
during the current crisis. Mary Schapiro, the new chief of the
Securities and Exchange Commission, is considering reinstating the rule, according to The New York Times.
The uptick rule was repealed by the SEC in 2007 because the
agency found that changes in trading strategies proved it to be
ineffective. The rule had been in place since the market crash in 1929.
It only allowed a short sale to take place at a price higher than the
price of the
previous trade. - Donna Block
