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SEC head says 'uptick rule' may be reinstated

SEC head says 'uptick rule' may be reinstated

The head of the Securities and Exchange Commission says dramatic changes in the global economy may merit restoring a rule aimed at preventing a massive plunge in a stock price caused by a rush of short sellers.
SEC Chairman Mary Schapiro says "hopefully" the agency will propose for public comment next month reinstatement of the so-called uptick rule.
The rule, which the SEC eliminated in 2007, requires short sellers _ those who try to profit from a stock's decline by selling borrowed shares _ to sell at a price above a stock's most recent trading price.
"The world has changed rather dramatically in the past year," Schapiro told lawmakers. "Hopefully we'll get our proposal out in April."


Updated : 2021-05-09 16:43 GMT+08:00