Bernanke Comments Suggests Up-Tick Rule Is Coming Back
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In this testimony to Congress today, Federal Reserve Chairman Ben Bernanke indicated that the up-tick rule may be coming back.
Bernanke said the SEC was looking at restoring the up-tick rule and had the measure been in effect it might have had some benefit in the current crisis.
The up-tick rule only allows short sales on upticks - that is when a trade occurs above the prior trade. The depression-era rule was repealed by the SEC in 2007.
Many market participates, including Jim Cramer, have been calling for the reinstatement of the rule. They argue that, by not having it in place, unscrupulous hedge funds can cause panic selling.
Bernanke said the SEC was looking at restoring the up-tick rule and had the measure been in effect it might have had some benefit in the current crisis.
The up-tick rule only allows short sales on upticks - that is when a trade occurs above the prior trade. The depression-era rule was repealed by the SEC in 2007.
Many market participates, including Jim Cramer, have been calling for the reinstatement of the rule. They argue that, by not having it in place, unscrupulous hedge funds can cause panic selling.
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