The Securities and Exchange Commissions (SEC) plan for
an alternative uptick rule has been welcomed as a measured,
political response. But more guidance is needed on
The rule will ban short-selling on individual stocks if
their price has dropped 10% in a trading session. At that point
a circuit breaker is triggered and short-selling is only
allowed if the sale is higher than the best bid price
It is a rational response and considering the
political pressure, the SEC has taken a measured and balanced
approach to the problem, said David Kaufman, partner at
Morrison & Foerster in New York.
However, there is a raft of issues that needs clarification
so that companies, banks and...