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 re-instate 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:
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).
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, and 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 re-instated, in the first place, throughout the entire market crash, is downright absurd (and suspicious). Regardless, there is now 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 you all- the better.
This is the time to help effect real change in D.C.
Write or Email your Representative here.