Subject: File No. S7-08-09
From: James M Reed
Affiliation: Retired

May 5, 2009

Dear Madam Chairman,

Market regulations should promote stable markets, facilitate price discovery, and facilitate exchanges between willing buyers and willing sellers. I don't feel competent to write about the impact of the uptick rule on the above. But I do believe that naked short selling acts counter to all three of the above goals and should not be allowed.

James M. Reed