CNBC reporting Barney Frank says uptick rule back within a month.

[dkf]

Finally! Damn what took so long?

http://en.wikipedia.org/wiki/Uptick_rule

The uptick rule is a securities trading rule used to regulate short selling in financial markets.

The rule mandates, subject to certain exceptions, that, when sold, a listed security must either be sold short at a price above the price at which the immediately preceding sale was effected or at the last sale price if it is higher than the last different price.

In 1938, the SEC adopted the uptick rule, more formally known as rule 10a-1, after conducting an inquiry into the effects of concentrated short selling during the market break of 1937. <1> The original rule was implemented by Joseph P. Kennedy, Sr., the first SEC commissioner.<2>

[kentuck]

1. Explain uptick rule?

for those that may not know what you are talking about??

[marketcrazy1]

3. here you go...

What Does Uptick Rule Mean?
A former rule established by the SEC that requires that every short sale transaction be entered at a price that is higher than the price of the previous trade. This rule was introduced in the Securities Exchange Act of 1934 as Rule 10a-1. The uptick rule prevents short sellers from adding to the downward momentum when the price of an asset is already experiencing sharp declines. The SEC eliminated the rule on July 6, 2007. http://www.investopedia.com/terms/u/uptickrule.asp

[Turbineguy]

4. The uptick rule limits

the conditions under which you can short sell a stock. Under the rule a stock can only be shorted after an uptick in the price. You cannot short stocks that are dropping in price.

The pulling of this rule resulted in the volatility we have seen as it increases the price swings.

[Skink]

2. Is that where they ban short selling of financials?

[dkf]

5. No. The uptick rule affects all securities, not just financials.

And its not a ban on short selling, just regulates when you can do the short sell.

[originalpckelly]

6. So in other words, the shit can still hit the fan...

the fan is just set at a lower speed.

[marketcrazy1]

7. the uptick rule

was in effect during previous recessions where market declines exceeded 45 percent.. it MAY slow things down.... or not!!

[dkf]

8. The biggest impact might be on investor sentiment.

The market was positively dismal for so long and people were just waiting on the side.

[dkf]

9. Apparently, this is the vibe he is getting from Mary Schapiro, head of the SEC.

also per CNBC.