April 16, 2009
Dear Chairman Schapiro and Governors,
I am writing to request a permanent reinstatement of the “Up Tick Rule (rule 10a-1). Please let’s not confuse the issues the likes of ‘Market wide’, ‘Security specific’, and ‘Circuit Breaker’ approaches. Without an increase over the last sale price, there is no price test and no ‘Up Tick’!
My E-mail of March 3rd, I thought was very specific, please review again;
“In this time of high volatility, and predator trading it seems you would want to lessen the manipulation and encourage investment. Such is NOT the case, when cascading short selling, loss in NAV values, Corporate P&L’s, and subsequent sell offs driving away buyers. Nothing has soured me more, about investing my money than the daily rollercoaster ride I have had since July 2007, when you de-regulated based on the testing done in 2003 (a period of time lacking volatility we now experience). May I point out the Solomon Bros. Inc. violation and market crash in 1987? Or, perhaps, the 3000+ investor letters received by Commissioner Paul Atkins, when floating the reform of these rules in 1999.
To me, the “Up Tick test” is a means to stabilize the float and selling of securities. It was dreamt up by those who knew it was necessary in the 30’s crash, and it most certainly couldn’t hurt to try it again now, we will know soon enough if the market shows it can stabilize.”
This economy and our retirements, are much to serious, to be putting your spin on what previously, has proved to work. ‘Up Tick’ the way we know, will stabilize the market!
J. Mauri Cox