SMF told investors and traders that this was one of the tools they could possibly use to get a short cover rally in the stock market.
The three largest U.S. stock exchanges proposed a so-called modified uptick rule that would restrain short sales in stocks that have posted “precipitous” declines.
NYSE Euronext, Nasdaq OMX Group Inc. and Bats Exchange Inc. made their proposal in a joint letter today to the U.S. Securities and Exchange Commission.
The SEC plans to meet next month to discuss reinstating the uptick rule, which was eliminated in 2007 and barred investors from betting against a stock until it sells at a higher price than the preceding trade.