Man CEO Backs Uptick Rule

Jan 24 2012 | 2:24pm 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

Q&A: MackeyRMS's Chris Mackey On A High Tech Fix To Broker Votes

Jun 23 2017 | 8:17pm ET

The looming implementation of the EU’s MiFID II rules regarding research has put...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of