Elimination of The Uptick Rule
The SEC eliminated the uptick rule on July 6, 2007. The SEC concluded from the study cited above: "The general consensus from these analyses and the roundtable was that the Commission should remove price test restrictions because they modestly reduce liquidity and do not appear necessary to prevent manipulation. In addition, the empirical evidence did not provide strong support for extending a price test to either small or thinly-traded securities not currently subject to a price test." Commenting on the scrapping of the uptick rule, The Economist reported that "short-sellers argue was largely symbolic, and it remains in place at only a few of the world's big stock exchanges."
Read more about this topic: Uptick Rule
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