March 17, 2009
I would like to comment on the uptick rule. I believe it should be restored as quickly as possible. If you notice the time the market went into decline, it was about the same time the uptick rule was pulled (along with the mark to market issue from the FASB change from "Fair Market Value" to "Fair Value.) The same thing happened in the Great Depression and they had to put the uptick rule back in place. I think the SEC should also look at the issue of large ETF funds skirting the margin rule on shorting as well. The issue ist the quant funds and ultra bear ETFs, which bypass Federal Reserve Regulation T margin rules governing the extension of credit by securities dealers and brokers in the U.S. This needs to be addressed, and the uptick rule needs to be restored.
Dwayne Hines