Stock Exchanges Propose Modernized Uptick Rule

Law360, New York (March 24, 2009, 12:00 AM EDT) -- The four leading U.S. stock exchanges on Tuesday submitted a joint proposal for preventing abusive short-selling that would update a rule first instituted in 1938.

In a letter to the U.S. Securities and Exchange Commission, Nasdaq OMX, NYSE Euronext (NYX), Bats Exchange and the National Stock Exchange proposed a modernization of the uptick rule, which the SEC is currently considering reinstating.

The rule, which expired in July 2007 after being in place since 1938, requires a stock to go up in price before a short sale...
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