Subject: File No. S7-08-09
From: JONATHAN Marlowe

May 29, 2009

As a recent graduate, I studied exchange markets and learned the details in the processes on how they work. I learned that markets overall are efficient, and a free market allows people (investors, traders, retirees, savers, etc.) to invest in companies through products that will help businesses grow.
Along with that, I learned and understand how short selling works, and the benefits involved in it. The action on short selling allows one to make a profit when a product goes down in value. The uptick rule is a very important part of this process, though, because by selling when the price is decreasing, this is essentially encouraging the security to go down even more. This is a self fulfilling prophecy for those that take part in this.
It is irresponsible to have a regulated free market that has loopholes like this that encourage negative practices and reward those that are not benefiting the market.