Alternative Uptick Rule

The SEC announced August 17 that it is seeking public comment on an alternative approach to short selling price test restrictions that the Commission says “may be more effective and easier to implement than previously proposed price test restrictions currently under consideration.”

The alternative uptick rule would allow short selling only at an increment above the national best bid. As a result, the Commission has reopened the comment period for 30 days–the original comment period for the proposals issued in April ended June 19–in order to receive input specifically on this alternative.