As some traders are already aware- on January 8, 2009, Rep. Gary Ackerman [D-NY] introduced Bill HR 302 IH in the House Of Representatives to "require the Securities and Exchange Commission to reinstate the uptick rule on short sales of securities."
The bill has now been referred to the Committee on Financial Services, and is co-sponsored by:
Rep. Carolyn McCarthy [D-NY]
Rep. Anthony Weiner [D-NY]
Rep. Carolyn Maloney [D-NY]
Rep. Michael Thompson [D-CA]
Rep. Nita Lowey [D-NY]
Rep. Michael Capuano [D-MA]
Rep. Ed Perlmutter [D-CO]
Here is the text of the bill:
To require the Securities and Exchange Commission to reinstate the uptick rule on short sales of securities.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. REINSTATEMENT REQUIRED.
Within 90 days after the date of enactment of this Act, the Securities and Exchange Commission shall--
(1) reinstate rule 10a-1 of the Commission’s rules (17 CFR 240.10a-1);
(2) rescind rule 201 of regulation SHO (17 CFR 242.201); and
(3) take such other actions as may be necessary to reinstate the price test restrictions that applied to short sales of securities prior to the Commission’s action in the proceeding entitled ‘Regulation SHO and Rule 10a-1’, adopted June 28, 2007 (Release No. 34-55970; File No. S7-21-06).
On January 27, 2009, Congressman Ackerman wrote a letter to the SEC urging them to restore the uptick rule.
“The best solution would be for the SEC to reinstate the uptick rule on its own” said Ackerman. “But if the agency fails to do so, Congress will force them to restore the regulation by passing our legislation.”
This is a bill to which all "longs" should immediately take the opportunity to write or email the aforementioned sponsors and your Representatives en masse and state your full support.
As traders are fully aware- the uptick rule's rescission in June 2007 contributed directly to short-sellers (including funds) being able to relentlessly "pin the bids" of stocks, such as financials- forcing stock prices lower and lower- causing massive damage to long investors. To date- shorts have conducted endless bear raids with impunity (and will continue to do so- unless and until the uptick rule is restored).
The fact that the uptick rule had not already been restored in the first place throughout the entire market crash- is downright absurd (and suspicious). Regardless, now there is finally a bill on the table...and it is every "long" trader's responsibility to do his or her part- and get Congress off its butt to finally do something relevant for the stock market. And the more the bill's sponsors and/or your Reps hear from you all- the better.
This is the time to help effect real change in D.C.
Rep. Gary Ackerman [D-NY]-
2243 Rayburn House Office Building
House of Representatives
Washington, DC 20515
Phone: (202) 225-2601
Fax: (202) 225-1589
218-14 Northern Boulevard
Bayside, NY 11361
Phone: (718) 423-2154
Fax: (718) 423-5053
Write or Email your Representative here.
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