By: XTOL on Sabato 07 Luglio 2007 12:22
che dite? stanno preparando una porta un pò più larga per certi obesi?
SEC revamps short-selling rules
Commissioners eliminate old rule, approves changes to others as they bend to new trading and pricing systems.
June 14 2007: 2:34 PM EDT
WASHINGTON (Reuters) -- The Securities and Exchange Commission has eliminated an antiquated short-selling rule and approved changing others to stem abusive short selling practices.
The five commissioners unanimously voted to drop a short selling limit, also known as the tick test or Rule 10A-1.
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The tick test only allows short sales when the last sale price is higher than the previous price. That means a trader cannot short a stock if the movement prior to the short sale is down.
The rule, adopted a decade after the 1929 stock market crash, was designed to prevent short sellers from adding to the downward pressure on a stock that is already falling sharply.
But the commissioners said Wednesday the rule was obsolete as new trading and pricing systems evolved.
"It's a historic day at the commission," Republican commissioner Paul Atkins said. "We are eliminating rule 10A-1 today because we have determined it is simply not needed."
SEC Chairman Christopher Cox said decimalization and changes in trading strategies undermined the effectiveness of the tick test, while increased market transparency lessened the need for it.