Chris Cox: The Old Uptick Rule Isn't Coming Back But A New One Might Be Put In Place

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Securities and Exchange Commissioner Chris Cox says the old uptick rule isn't coming back. But he added that a new "price rule" with "teeth in it" is being considered by the securities regulator.
The uptick rule, which required a stock to move upward before a short-seller could short a stock, was abolished after decades of operation. Cox emphasized that the uptick rule was closely studied by the SEC before it was repealed. Speaking to CNBC's Erin Burnett on "Street Signs," Cox stated plainly that the SEC was not considering restoring the rule. Advocates of the rule have said that bringing it back might lower market volatility. Cox dismissed that possibility.
"We've had so much of economic study of the uptick rule, I dare that never has an SEC action been taken with more economic analysis," Cox said. "I don't think that the old rule was worth anything."
He added, however, that SEC was considering an unspecified new price rule. "On the other hand, whether a price test with teeth in it might be worth something is, I think, a subject properly for study by the SEC in real time and we've undertaken already to do that."
Every time this man speaks he adds uncertainty and regulatory risk to the markets.

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