Lawmakers continue to apply pressure to the Securities and Exchange Commission to reinstate a Depression-era rule that prevents traders from short-selling stocks whose share prices are falling.
Sens. Ted Kaufman, D-Del., and Johnny Isakson, R-Ga., have floated a bill requiring the commission to restore the “uptick” rule, which had been discontinued in 2007. Proponents of the reinstatement hope it will discourage selling frenzies.
SEC Chairman Mary Schapiro indicated that she was in favor of revisiting the issue of resurrecting the uptick rule.
A vote on the rule is scheduled for April 8.
