October 9, 2008
Dear Sir/Madam,
I have some comments on the new short selling rule:
1) In order to stabilize financial markets, and prevent stock price manipulation, a broad ban of short selling across the board should be immediately put in place. It is unfair and ineffective to ban short selling on financial firms only. As everyone in the market knows, institutional investors are going through an asset liquidation process. This is not the time to tolerate with short sellers who effectively flood the market with shares, push prices down, and prolong the liquidation process. If SEC cares about keeping orders of financial markets, and protecting public investors interest, a broad ban of short selling must be put in place right now.
2) SEC must crack on naked short sellers decisively, and requires them to secure shares to cover their short position with 72 hours.
3) The uptick rule must be reinstated.
4) Stop the preferential treatment of financial stocks. Not only the interest of Wall Street firms, but also that of every investor, need to be attended.
Sincerely
Qi Lu