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Uptick rule: Who's for it? Who's against it?

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Reuters said this about the SEC's meeting on Tuesday about short selling: "Financial professionals, academic experts and the U.S. broker-dealer watchdog agree the Securities and Exchange Commission should not reinstate its old uptick rule to regulate short selling..."

But here's what the TheStreet.com wrote after reviewing the public comments: "The SEC has received more than 300 comment letters from a range of sources, including individual investors, stock exchanges, academics, brokerage firms, auditors and accountants, many of whom excoriated the agency for eliminating the uptick rule in the first place."

So what gives? Well, many of those letters were likely from individuals who want some kind of action--which is completely understandable. But the question is, what kind of action? I'd be surprised if the SEC reinstated the old rule. In fact, I'd be shocked. My guess is that one of the circuit breaker approaches will win out, my bet would be on a temporary, circuit-breaker-triggered halt, but we shall see.  

For more:
- here's the Reuters article  
- here's the article from TheStreet.com

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