May 5, 2009
There is abundant hypothetical theory on how the absence of the uptick rule could, in theory, result in devastating consequences for individual stocks by allowing their prices to be rapidly driven down to disastrous levels. Levels at which nobody would feel confident in holding them, only in piling into the short sale. It was this obvious possibility that led to the creation of the uptick rule before you were born.
By eliminating this rule just two years ago, you gave us an excellent scientific test of this theory. Now that we can see the results of this unfortunate experiment, your goal should seem obvious to any objective observer - reinstate the original rule.
Please do not "modify" this rule, or use the circuit breaker approach to select stocks. These things might help the brokerages or exchanges maintain their high profits. But you are supposed to represent our interests, not theirs. And please don't try to sell the absurd argument that because of digital trading you couldn't possibly re-instate something that was working fine on digital systems just two years ago.