The "SSR" designation on NMS securities (those securities listed on a US stock exchange) stands for "Short Sale Restriction." Specifically, SSR is an SEC Rule referred to as the "Alternative Uptick Rule" or "Short Sale Circuit Breaker Rule." This rule is designed to restrict short selling of individual stocks that have experienced a significant decline in price during a single trading session.
Here's how the SSR works:
The SSR is one of the regulatory mechanisms implemented by stock exchanges to promote market stability and prevent aggressive short selling that could potentially exacerbate price declines. It is like the circuit breakers and short sale restrictions applied in other exchanges and markets.
Investors and traders should be aware of SSR rules when trading, as they can impact the execution of short sale orders for specific stocks during times of significant price volatility. These rules are designed to strike a balance between allowing short selling as a trading strategy and preventing potential market manipulation or excessive downward pressure on stock prices.