My access to your link is forbidden for some reason.
Saw it this morning too...
NASDAQ OMX, in Cooperation With Other U.S. Markets, Proposes a Modified Rule to Further Reduce Abusive Short Selling
A More Modern 'Uptick' Rule in Keeping With Today's Sophisticated Markets
NEW YORK, Mar 24, 2009 (GlobeNewswire via COMTEX News Network) -- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that it is leading an effort to introduce a "Modified Uptick Rule," a rule that would modernize and enhance current rules designed to prevent abusive short selling. In a letter to the Securities and Exchange Commission today, NASDAQ OMX, together with BATS, the National Stock Exchange and NYSE Euronext proposed the new restrictions on short selling as the SEC begins to consider rules to eliminate abusive short selling from the market.
The letter from the exchanges states that "...under our Modified Uptick Rule, short selling can only be initiated at a price above the highest prevailing national bid by posting a quote for a short sale order priced above the national bid. As such, the execution of a short sale would occur only at a higher price than the prevailing market at the time of initiation, and only on a passive basis." The markets went on to state that, "This restriction would greatly assist the prevention of manipulative short selling, which is so harmful to the markets."
Bob Greifeld, Chief Executive Officer of NASDAQ OMX, commented, "Markets have changed greatly since the original Uptick Rule was first implemented in the 1930s and it is important that modern markets have modern regulation. With the last sale price, or tick, of an actively traded stock sometimes changing hundreds of times in a single second, we have long believed the original uptick rule failed to deliver any prohibitive value. This more modern Modified Uptick rule will deliver critical protections from abusive short sellers to our publicly traded companies and their investors."
About NASDAQ OMX Group
IMO. This suggested rule is BS. The 10% knockdown to trigger the old UPTICK is just giving them a backdoor to pile on stocks. When does that 10% downside rule get pulled after a slide in the stock? Adds too much complexity so they can have a window to pile on a stock.