Subject: File No. S7-33-10
From: Alex Cota
Affiliation: Student

December 12, 2010

There is no doubt that insider trading is an ongoing issue that will continue to be a problem for the SEC. One possible way to help prevent insider trading that I know the SEC has been thinking about for a while is paying a reward to people who let the SEC know who is doing the insider trading. I believe that this proposal and giving rewards to people who point out the illegal traders could be a good place to start. The SEC needs to be more aggressive when it comes to punishing insider traders and regulating this type of activity. To me, it seems that the only way to prevent insider trading that goes on with upper management is high regulation and this proposal definitely helps with that. Being more aggressive means tapping the phone lines and creating technology that keeps an eye out for these criminals at all times. This also means watching what employees trade and perhaps having them get approval from upper management or the SEC before they decide to trade. Bottom line, giving incentive to people for informing the SEC on who is insider trading is a step in the right direction.