RE:The state of the TSX VentureExcellent read. I use level2 and have been discussing these bizarre transaction and activities for several years now with my associates. It is exactly how he describes it. The removal of the uptick rule for shorting has had a massive negative impact to investment style trading and has created a black hole of destruction in the value and potential of most juniors.
I don't know whose brainchild that was but I suspect they were more interested in the pennies that could be made instead of the interests of actual investors looking for real and honest investment. It would have been too simple I guess to keep the rule and just amend it to the highest uptick across all exchanges, oh no that would have been way too straight forward and transparent.
And it’s also sad when you consider that it was the Securities commission that caused the problem in the first place by telling the TMX that they had to allow other exchanges. Then they crew it up even more by removing the one thing that provided real investors a fighting chance against the subsequent explosion of HFT trading systems. Those systems now have free rein to wreak havoc on a stock. They can short the heck out of it without ever owning one share and within seconds they cover the short making thousands of dollars all the while decimating the stocks share price. The real investor hasn't a clue what just happened except that his stock just lost 30% of its value.
Bring back the uptick rule, let’s all write the Securities Commission, bombard them with emails to bring this rule back, it's our only hope. Any other ideas how we can affect this change?
M