Subject: File No. S7-08-08
From: Michael Kianka

August 1, 2008

I am writing in regards to enforcement of naked shorting rules. This issue is of great concern to me. If you were to watch the markets real time as I have for many years now, you would be appalled at the change of tone in trading that ensued as soon as you removed the uptick rule for shorting. It has become nearly impossible for a small investor to feel confident in the market since then. Stock prices are routinely manipulated through aggressive bouts of short selling. I would strongly recommend the enforcement of the naked shorting laws and re-instatement of the uptick rule. I would also encourage you to develop a rule which requires short sellers to disclose holdings after crossing percentage thresholds, similar to those rules which require longs to disclose large ownership stakes. This would add transparency and discourage manipulation.


Michael Kianka