uptick rule


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Uptick rule

SEC rule that selling short is allowed only on an up tick.

Rule 10a-1

An SEC rule that formerly prohibited a short sale except on a plus tick or a zero plus tick. That is, Rule 10a-1 disallowed short sales at a price below the price at which the security traded most recently. This rule was intended to prevent short sellers from artificially deflating a security's price so that it harmed other investors. It was also called the uptick rule. It was replaced by Regulation SHO in 2007. Some have argued for its reintroduction.

uptick rule

An SEC rule that prohibits the sale of borrowed stock when the last price change in the stock was downward. Part of the Securities Exchange Act of 1934, the uptick rule is designed to keep investors from manipulating stock prices downward by borrowing and selling shares in a declining stock. See also short sale.
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The uptick rule should come back," wrote Howard Ward, portfolio manager for the Gamco Growth Fund, in a letter to the SEC.
Rule 201 was implemented without a pilot study, unlike the repeal of the previous uptick rule in 2007.
Duration of Price Test Restriction : Once the circuit breaker has been triggered, the alternative uptick rule would apply to short sale orders in that security for the remainder of the day as well as the following day;
We are also aware that it has been argued that there would have been less volatility had the uptick rule been kept.
123) To convey their support for reinstating the uptick rule, below are several entries from the list of comments.
7 percent from July 2007--when the uptick rule was eliminated--to July 2008.
The Uptick Rule prohibits the short selling of securities except on an uptick.
To that end, BATS Exchange is pleased to join with NYSE and Nasdaq to propose a Modified Uptick Rule and Circuit Breaker, measures which would go a long way towards dealing with this issue so critical to the success of U.
Then there is the uptick rule, which bars traders from short-selling a stock unless the most recent trade is higher than the previous.
1) Restore the uptick rule, where short sales can be consummated only upon a rise in security price.
Pasquini, president and chief executive officer of Fortune Petroleum said, "We believe our AMEX listing will provide Fortune and its shareholders with the benefits from the AMEX uptick rule, tight spreads, liquidity and will also provide the company with blue sky trading clearance throughout the United States.
NIRI Also Backs Reinstating Short-Selling Uptick Rule or Implementing Circuit Breakers