SEC Mulls a Rule That I Talked About Previously

The SEC is mulling two rules for short selling.

The first rule is:

The SEC is working on an updated version of the uptick rule to include all stocks and a bid test, which would only allow shorting at a price above the highest available bid, said the source, who requested anonymity because the proposals are still being crafted.

YAHOO!!!! YIPPEE!!!! You guys are doing your jobs! I talked about the bear raid algo. Remember that? (1, 2) I had people tell me to my face that I was seeing things. And it was not just one or two people. Most people were skeptical that it existed!

Well folks, why on earth would the SEC introduce this rule if it did not exist? Answer because it existed and it was taking the market down! Personally I think this rule is the only rule that they need to institute as it will stop the bear raiding, but yet it will allow those that want to hedge to hedge, and those that want to keep the market efficient, efficient.

The other rule is a circuit breaker that stops a stock from collapsing. I have mixed feelings on this one because to be fair one would also need a circuit breaker the other way as well to keep the market efficient. I can understand the circuit breaker, and it might not be bad, just on that one I wonder.