Subject: Restriction of naked short selling

July 16, 2008

I believe the SEC's recent restriction of naked short selling in selected securities is appropriate and needed to curb abusive short sale practices. Unfortunately, the unintended consequence of removal of Rule 10a-1 has also likely contributed to an increase in abuse due to there now being the opportunity for unrestricted short selling with no price test restriction. I would strongly urge the SEC to re-consider and re-evaluate the removal of Rule 10a-1. Over time removal of this Rule will likely cause higher levels of speculation and price volatility contributing to an erosion of public confidence, while raising risk premiums and cost of capital. At the very least given the market conditions since this Rule's removal I'd suggest the SEC re-examine this area.


Michael Sigmon, CFP, CFS, ChFC