September 11, 2009
Dear Chairman Shapiro,
As a seasoned investor and due to hedge fund organized short raids pounding all bids in sight, markets in general and financial institutions specifically collapsed in March and are still on very precarious grounds, despite help from the "invisible" hand of the Fed. Many smaller stocks have never recovered, despite a solid future ahead of them.
I understand that you are still soliciting commentary on the matter of the Uptick Rule (above bid rule) and short selling. Illegal short selling persists and investors are being unduly punished for the benefit of "rogue traders" and under the pretext of maintaining liquidity supported by academic studies and a large parade of self interested professors.
I have no problem with legitimate short sellers, but am unalterably opposed to Naked short selling in any form (the most damaging of all) including the highly corrosive practices emanating from from Canada and other non-US sites, despite the fact it is considered illegal. Basic market integrity MUST be reinstated to North American financial markets as doing so will save investors, pensioners and businesses (large and small) that have been the foundation of a thriving America.
The time has come to take action. The frequency trading, front running, quasi-derivatives, insider trading and wanton naked short selling make a mockery of our markets.
Chairman Shapiro, I realize it takes time to get up to speed on the issues confronting your organization. Please hurry, time is not on our side. You and I are getting older and future generations will pay the consequences of inaction.
Thank you for listening,
Best Regards,
James Gibson