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-- trading ruled that some say could have prevented the market crash will be the topic of debate on Capitol Hill today.
As -- Securities and Exchange Commission goes before lawmakers senate banking committee will question as if he had Mary Schapiro.
Although whether -- reinstate the uptick rule which prevented investors.
For making a profit on -- stock's decline and was mixed in 2007.
Didn't prevent them actually slow it down.
We'll -- the removal of that ruled the Dow Jones S&P 500 have dropped over 40%.
For more on today's hearing I'm joined by democratic senator Ted Kaufman of Delaware senator could see this morning.
Good -- -- you Alexis still -- at this a couple of weeks ago I had multiple conversations.
With Bob Wright elder Duncan Niederauer at the New York Stock Exchange and at the NASDAQ about this.
Here's the problem to simply reinstate the uptick rule sounds great on paper but we've got to look at how we do it in this kind of climate given the fact.
That we're living in the world a -- do you support the concept of doing it on the stock by stock basis or as a broad overhaul -- -- what do you want to happen.
Unless you brought over home rule I the single most important thing right now is building people's confidence in the markets and markets a fair.
We had the uptick rule for seventy years.
I learned about the Wharton school to kind of the basic thing capped.
Bear market rates kept from driving the market down exactly what's happened over recent recent months.
On I think the uptick rule is the answer all by itself as -- cause of this thing for the uptick rule of -- when some real -- on naked short selling lemonade naked short selling.
In naked and so I think that has to -- I think this and I don't get the technology together software to.
To be able to do this but not to institute uptick rule because of technological problem doesn't -- to be to be answered we have to build confidence in the markets that's the -- That's success in getting people back in the market.
And in fact the head of the Escude who had a fair and space -- commission Mary Schapiro in hurt.
Confirmation said she was leaning towards putting up -- back -- back in the head of the Fed called for the for the uptick rule back and -- 85% of the people on the I think of people -- on the markets had different but -- uptick -- -- it's become kind of a crisis in confidence.
-- -- uptick rule and also.
The other piece the puzzle is eliminating naked short selling making sure people that are that.
And that was just endorsed by all the markets.
There was a letter written by the people -- in the likes of Duncan Niederauer Bob -- -- and some other members of of different and regulatory bodies are different exchanges.
Expressing some concerns about.
How this will be re implemented.
And whether or not as I mentioned before it is individual circuit breaker is an individual stocks mean.
This is pretty complicated and this is complicated at a time when the short interest.
Is growing at one of the highest levels particularly on the New York Stock Exchange -- -- the most recent figures said.
It's the quickest pace in more than a year that -- hasn't -- quadrupled the names like city gripped.
How think they will implemented in an environment where a lot of people say wolf I'm not -- -- the stock re gonna change the rules.
I'm gonna go to other places under the credit default swaps -- about the options market I'm still gonna find a way to bet against stocks.
Yeah well like this I just think that that the putting the uptick rule back is the right way to go I think it's not a technological -- I think look at what's happened.
But without the stock market they have a number of different proposals.
Showed that the uptick rule will really help other people think it that it won't help but I think it's.
The uptick rule -- just a piece the puzzle.
We've also called on the head of Thursday's commission to stop naked short selling which is part of it I think revealed after wheel and deal with technological problems we have to put back in the rules.
Battalions naked short selling.
And the real problem here is -- -- -- exchange commission had 5000.
Complaints against naked short selling.
It looked -- -- 123.
And they had zero enforcement this is not just a -- uptick rule naked short -- this is a question of whether.
The SEC is really going to be in the side of the small investor to get people back in -- market.
And now more than ever I think if you talk to everyone.
Everyone says the single most important thing for the -- to turn -- in addition the economic changes which were put in place -- confidence in the market.
And how have come to market when you have things like -- uptick rule and naked short selling which are being unregulated by this very strange commission and then I'm moving on.
Because the vast majority people believe this is the -- the uptick -- the piece the puzzle.
Naked short selling this and other reforms to be called -- people -- -- the markets now more than ever with record short selling I am all for short selling our country -- telling myself.
But it should be controlled should have an uptick rule and should not be able to us all sorts -- shorts.
Naked without having any experience back.
All right senator Kaufman we will leave it there thank you very much for continuing to reiterate this we appreciate you joining us this morning.
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