August 9, 2008
I am writing to you to ask you to extend the pre-borrow rule and extend it's coverage to the entire market. I ask that you do this to stop hedge funds from naked shorting shares and hurting retail investors. Naked shorting is illegal and making and extending the pre-borrow requirement will cut down the damage done by short selling. Re-introducing the uptick rule would also be a good idea.
It would also be a good idea to require brokers to confirm delivery of stock purchases to their customers. Doing this would give the retail investor more confidence in the stock market.