Uptick Rule

A former SEC regulation (Rule 10a-1) that required short sales to be executed at a price higher than the previous trade, designed to prevent short sellers from piling on during a decline. The original rule was eliminated in 2007 after the SEC concluded it was no longer necessary, but the 2008 financial crisis prompted the introduction of the alternative uptick rule (Rule 201), which restricts short selling only after a stock has already fallen 10% in a single day.