August 18, 2009
Regarding your solicitation of commentary on the matter of the Uptick Rule (above bid rule) and short selling:
Small investors like myself are being unduly punished for the benefit of a small cadre of traders flaunting current flaws in the computerized system which have spawned, enabled, and even encouraged destructive trading schemes, including frequency trading, front running, quasi-derivatives, insider trading and wanton naked short selling. This is making a mockery of our markets.
I try to invest in small commodities and precious metals companies with strong credentials. Illegal short sellers pounded these securities last March, and have continued to cap the prices to-date with naked short selling, obviating any potential price rise based on fundamentals.
Chairman Shapiro, Please reinstate the uptick rule as early as possible. Any version will do.
Anything you can do to restrict frequency trading and shut down front-running would be much appreciated as well.
Thank you for listening,
Richard Cromie