The SEC eliminated the uptick rule on July 6, 2007. The elimination of the rule was preceded by a SEC order, placed on July 28, 2004, to create a one-year pilot temporarily suspending the uptick rule on select securities. The purpose of the suspension was so that the commission could study the effectiveness of the rule. The SEC’s Office of Economic Analysis and academic researchers provided the SEC with analysis of the data obtained during the pilot. The general consensus was against the uptick rule, with the commission concluding that the uptick rule “modestly reduce[d] liquidity and do[es] not appear necessary to prevent manipulation.” The rule was originally put in place to avoid the perpetration of a financial crime known as a bear raid. However, short sellers themselves viewed the rule as “largely symbolic” and having little actual effect on short selling. AND WHEN DID THE BEAR RAIDS START UP??? AUGUST OF 2007!!! WHAT A SCIENCE!!!
When did institutions start writing off billions of dollars in losses?