"A new uptick rule, were it to be implemented, would probably try to get around the decimalization problem by forcing shorts to wait for a full percentage point increase in a stock's price. That would definitely reduce shorting opportunities and restrict many shorts to only the largest, most liquid stocks."
Finally someone understands that the uptick rule will be difficult to enforce, unfair to short sellers, and will reduce liquidity in the markets.
Great discussion between: Adam Bold, founder and chief investment officer of the Mutual Fund Store, Richard Gates, portfolio manager for TFS Capital, Laura Corsell, an attorney with Montgomery, McCracken, Walker and Rhoads, and James Lowell, editor of the Fidelity Investor.http://www.forbes.com/2009/04/16/mutual-funds-uptick-intelligent-investing-uptick-rule.html
"As a practical matter, there may be limited short-term impact in the event the rule is reinstated, however, and it is worth recalling that the rule won't effect derivatives trading." Yes, now we have markets that are not linked. Great idea.
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