Discussion on MSNBC pointed out that credit default swaps will do the same thing as short selling anyway, so the uptick rule will not do anything to circumvent or punish short selling in general. They think that the uptick rule will restore confidence, if nothing else for psychological peace of mind. But, you can connect a credit default swap, with out of the money puts, and then short without the uptick and drive the stock down. So the credit default swaps, synthetics, derivatives, exchange traded funds which are all forms of shorting. Clearly this uptick rule is not the magic bullet, but it will be for the S.E.C. to decide along with the investors they listen to.
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