Uptick Rule to Be Applied to Short Selling on the Stock Exchange

A new regulation for short selling transactions is being implemented on Borsa Istanbul. According to a report by T24, an 'uptick rule' will be applied to short sales. This rule mandates that short selling orders be entered at least one tick above the current best bid price. The uptick rule aims to limit short selling pressure and reduce market volatility. With the implementation of the rule, investors will be prevented from short selling directly at the best bid price or at a lower price. In this way, it is aimed to prevent sudden price drops. Details regarding when the regulation will take effect have not yet been clarified. However, it is stated that the decision was taken by the regulatory authority in the capital markets. Market participants assess that the new rule could particularly dampen sharp movements caused by short selling during volatile periods. Short selling is a type of transaction in which an investor borrows an asset they do not own, sells it, and aims to profit by buying it back at a lower price. The uptick rule requires that the price of sell orders in such transactions be gradually raised. Thus, it becomes harder for short sellers to pressure prices downward with aggressive selling. Not investment advice.