Anti Short Rule Text

Here's a link to the actual text of the rule.

http://www.sec.gov/r...08/34-58592.pdf

I had to laugh:

From the SEC "...the Commission has concluded that there continues to exist the potential of sudden and excessive fluctuations of securities prices generally and disruption in the functioning of the securities markets that could threaten fair and orderly markets."

It's certainly orderly to artificially drive the S&P futures up 120 points from lunchtime yesterday to 7:30 this morning.

I was certainly open to a rally due to the sentiment, but c'mon!

Thank goodness I didn't have any short mutual funds. Yikes. Imagine a position in Tempest. You're stuck.

Here's a link to the actual text of the rule.

http://www.sec.gov/r...08/34-58592.pdf

I had to laugh:

From the SEC "...the Commission has concluded that there continues to exist the potential of sudden and excessive fluctuations of securities prices generally and disruption in the functioning of the securities markets that could threaten fair and orderly markets."

It's certainly orderly to artificially drive the S&P futures up 120 points from lunchtime yesterday to 7:30 this morning.

I was certainly open to a rally due to the sentiment, but c'mon!

Thank goodness I didn't have any short mutual funds. Yikes. Imagine a position in Tempest. You're stuck.

I got a call about lunch time yesterday
http://www.traders-t...showtopic=94013

Only fair if you are a rich guy and lost big money. Gov't is supposed to help them not the poor.

This emergency action should prevent short selling from being used to drive down the share prices of issuers even where there is no fundamental basis for a price decline other than general market conditions.

And who the hell are they to determine that and, for the sake of argument...and it's a hard argument to make...what does banning all short selling have to do with rectifying this supposed sin?

My anger and fear for all matter of collateral damage this will cause is still white hot. I'm just glad I didn't leave any positions hanging or take any short positions at the end of the day. That kind of turnaround rise in the markets the day before OPEX had me thinking some scummy government game was afoot.

Edited by milbank, 19 September 2008 - 08:39 AM.