Subject: File No. 4-590
From: Richard Gerdy

January 7, 2010

I have previously submitted three comments, all with the same theme, which is characterized as follows:

"There are a number of avenues that allow short selling which have never been subject to a tick test. Some of these actually allow the trader to execute leveraged short selling by buying a product.

When the SEC implemented Regulation SHO, the tick test was dropped for at least 7,000 listed stocks. The regulation essentially democratized short selling.

If the SEC reimposes a tick test on these 7,000 stocks, sophisticated traders will in no way be restricted from executing short sales".

I served on an committee that furnished information to the "Brady Commission Report on the Crash of 1987". It is essential that the SEC recognize that amending Regulation Sho, would drive traders towards increased use of short sale avenues that don't require a tick test. Use of indexes would increase which could dramatically increase volatility. Is the SEC ready to take that risk ?