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What is SEC Rule 201?
Is the "Alternative Uptick Rule” harming your ability to trade equities?
"The alternative uptick rule (Rule 201) imposes restrictions on short selling only when a stock has triggered a circuit breaker by experiencing a price decline of at least 10 percent in one day. At that point, short selling would be permitted if the price of the security is above the current national best bid." 1
Who is this an issue for?
Those who need us: Use us to stay flat, complete baskets, avoid margin issues, or have your customers avoid margin calls! The good news is that, though you are need driven, you will benefit from the same pricing as our profit-driven, price-sensitive customers.
Liquidity Providers: If you’re using these tools to lever an advantage, such as better borrow, completing baskets where others can’t, momentum trades, or even simple arbitrage, we aim to be the superior solution for you. We can also provide a dynamic feed with live intraday adds to the SSR list.
The Solution
We’re proud to introduce Strategic Price Improvement (SPI) - a ground-breaking equity trading algorithm that allows you to sell short, even after the stock has triggered the down 10% Short Sale Circuit Breaker.
Here’s how SPI works:
We provide access to our SPI algorithm through the SunGard Global Network which can be reached through a variety of OMSs and extranets.
Once installed, it can be set up to work as soon as a stock triggers the exchange’s down 10% circuit breaker.
When a stock becomes restricted, any short execution requires a price greater than the National Best Bid, regardless of the tick.
Our SPI creates a sub-penny improved price above the NBBO bid and purchases your sale on the ACT.
Our broker-dealer partner absorbs the risk, and you are able to short your stock, leaving your portfolio as desired.
With active names from the NYSE and NASDAQ appearing on the list of restricted symbols daily, and often over a billion shares, our service offers you a critical way to sell when you need to most.
How are we able to provide this solution?
Our livelihood comes from taking the risk of working out of your sales, and any surplus in our base charges. We charge no subscription, connectivity or service fees. We are an execution route that remains dormant on your platform until the market circuit breaker triggers SPI into action.
About us:
We are a team made up of former CBOE, AMEX, NYMEX, CME, & NASD traders.
We have created an automated, high-speed, and compliant way to get you the liquidity you deserve.
References
Securities and Exchange Commission. 2010. “Press Release.” SEC.gov. https://www.sec.gov/news/press/2010/2010-26.htm
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