Financial Times FT.com

Uptick rule given new lease of life

By Anuj Gangahar in New York

Published: April 8 2009 19:11 | Last updated: April 8 2009 19:11

The reintroduction of a form of the “uptick rule”, which became inevitable following Wednesday’s Securities and Exchange Commission meeting, draws reactions ranging from relief to disdain.

The previous incarnation of the rule – scrapped on July 6, 2007, just as the credit crunch was clicking into high gear – prevented stocks from being shorted unless the last tick in their price was up. The idea was to prevent short sellers from driving down share prices.

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