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SEC may ban short selling again.

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DEP
Super Contributor
This most be good news for financial stocks in the US. Do you guys agree with the ban?
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8 REPLIES 8
richardw
Super Contributor
And bring back the uptick rule, where you can only short if the last trade was higher than the one before it. Slows down the effect of pile-on shorting.
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DEP
Super Contributor
I hope the JSE will also apply it here. Maybe our banks will stabelise.
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Amar
Contributor
It didn't work the last time, why would it work now....
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Not applicable
Last time they meddled like that, it caused the largest one-day gain on the markets in history. (I remember it clearly because I was short OML with all I had, and it opened 15% higher...) For the record, stocks still declined (with a lot of volatility). I can see no mention in the press of the possibilty of the ban's re-instatement - do you perhaps have a link?
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Not applicable
As mentioned before, short-term traders increase liquidity, which reduce volatility. All the anger directed at the shorts (who go long just as often or even more often) is misdirected.
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Not applicable
Thanks. I find this very frustrating - impossible to say which way the market will go when you don't know if / when they will change the rules. But they mentioned only meeting next month - so I guess we follow the downward trend until then...
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Wizard
Super Contributor
In fact it made it worse if u look at the graph...but some politicians want to get reelected so what we can do....
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