According to Investopedia, “By entering a short sale order with a price above the current bid, a short seller ensures that his or her order is filled on an uptick.”
And over the week-end the New York Times reported that new SEC Chief Mary Schaprio is considering reviving the uptick rule.
The Fast Money traders have mixed thoughts on the move, but overall they don’t think it will do much. Following are their comments.
“I think the uptick rule is just another way to legislate shiny happy people,” bristles Jeff Macke.
“Considering we trade on decimals now I think the uptick rule is a waste of time,” adds Karen Finerman.
“Oh come on,” counters Zach Karabell. “You have to have some regulatory framework or you'd have everyone in a mosh pit of trading and there would be no order to any of it.”
"If you make the margins a nickle or a dime wide, the uptick rules makes sense," adds Dylan Ratigan. "Without that it makes no sense."
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Trader disclosure: On Feb. 25th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (GE) Put Spread; Najarian Owns (DNA) Calls; Najarian Owns (FCX) & (FCX) Calls; Najarian Owns (GDX) & (GDX) Short Calls; Najarian Owns (HPQ) Calls; Najarian Owns (MSFT); Najarian Owns (MS) & (MS) Short Calls; Najarian Owns (X) Put Spread; Najarian Owns (WFC) & (WFC) Calls; Karabell Owns (AAPL), (BHP), (FCX), (GOOG), (GLD), (JPM); Macke Owns (MS), (TM), (SDS), (DIS); Finerman Owns (RIG), (DAI); Finerman's Firm Owns (DNA), (MSFT), (RIG); Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO); Finerman's Firm Is Short (BBT); Finerman's Firm Owns (WFC) Preferred