April 22, 2009
I don't understand why there is a need for a comment period. Those who are determined to manipulate the market don't want the uptick rule unless it is in a form that can be easily manipulated. Main Street investors not only want a more substantial rule, but they would like some enforcement by the SEC, something that was lacking with Linda Thomsen.
But to comment, establish an uptick rule that cannot be manipulated by a quick small buy and followed by a large sell. Using previous data (that Main Street keeps requesting via FOIA), I'm sure that the SEC can determine how the rule can be manipulated. Establish a policy that will be enforced using data from the DTCC.
Oh, another idea that might help with the SEC establish credibility with this rule and others is to establish a policy of follow-on employment from the SEC, one that would deal with conflicts of interest, well demonstrated by various directors from the SEC. Another idea might be to establish penalties in which companies pay a fine and have to plead guilty to a crime, and are removed from financial markets business for several years as part of the penalty. (Wow, with more ideas like this, I could be a Director. Please let me know if you would like me to apply for employment. I would establish a new department for common sense.)
Oh, back to the uptick rule. (I keep forgetting to watch the left hand moving while the right hand continues to let business go on as usual.) Establish a qualified uptick rule and then let's get on to the real business of protecting our financial markets.
Thank you