May 26, 2009
Dear Sir:
I am writing in support of the reinstatement of the Uptick Rule. I believe this will aid in reducing market volatility, and prevent abuse of market declines by professional traders. Just as sporting events require the use of umpires and referees, the capital markets also require rules (and referees) that will prevent the few, who with deliberate intent, will use any tactic available to manipulate the market to their favor at great cost to society.
I also request the SEC consider banning levered ETF's. These trading vehicles are once again the cause of excessive market volatility near the close of each session, as the ETF's attempt to re-balance each day. Because of the leveraged nature of these trading vehicles, the negative effect on the markets is disproportionate to their worth. Both Long and Short levered ETF's should be banned from the marketplace.
Best Regards,
David Beauchaine