Man CEO Backs Uptick Rule

Jan 24 2012 | 1:24pm ET

Man Group CEO Peter Clarke has thrown his weight behind the return of the "uptick rule," a short-selling restriction that he said could prevent sudden market crashes.

Clarke told the London School of Economics Alternative Investment Conference yesterday that the rule, first instituted during the Great Depression, abolished in 2007 and revived in part in 2010, could prevent high-frequency traders and quantitative programs from fueling "flash crashes" like that seen in 2010.

"From a personal perspective, reintroducing the uptick rule… would not be a particularly bad thing," he said. "You can only short when the previous trade was an uptick, which would stop some of the… quant strategies from becoming systemic in certain markets over the short term."

In 2010, the SEC revived a form of the rule, imposing the uptick requirement on stocks that drop 10% or more in a single day.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...