Trading firms such as Vanguard and Goldman Sachs have opposed the Security and Exchange Commission’s (SEC) proposal on the “uptick rule,” The Wall Street Journal reports. Under the modified rule, traders will be allowed to sell a stock short only at a price higher than the lowest price at which investors are willing to buy a stock.
Short-sellers improve liquidity and have a positive effect on the marketplace, said Gus Sauter, CIO at Vanguard. Curbs on their activity would limit trading and hurt individual investors. High-frequency traders, such as Getco and Hudson River Trading, have also raised objections to a new uptick rule.
For the complete story, click here.