Subject: File No. DF Title IX - Short Sale Disclosure
From: peter r costa
Affiliation: retired banker

August 25, 2010

Short selling should be abolished or at the least, very tightly controlled. The uptick rule should be reinstated. Before when the markets traded in fractions, an 1/8 of a dollar was usually the norm. Now, the uptick should at least be set at a full penny. In addition, the naked short selling rules should be strictly enforced. If the entity doing the trade has not borrowed the shares, there should be a heavy fine imposed. In place of short selling, options can be used without having as much negative impact on the price of the stock. Had it not been for the "shorts", firms like Lehman might have been able to survive. Another suggestion is to limit short selling to a 4 hour time slot between 10:00 AM and 2:00 PM. This would give the markets a chance to adjust to any fast breaking news at the beginning and end of the trading day. Finally, there should be no short selling or program trading (of any kind) during the last hour of the trading day. The swings during the last hour of each trading day do very little to instill confidence in the market.