Subject: File No. 4-627
From: Howard B Haftel
Affiliation: Retired Investor

May 4, 2011

Selling short is the the tilt of a level playing field. It gives the advantage to those that can do it and places a major disadvantage to those that can't.
The argument is Liquidity and that is nonsense.
A level playing field gives nobody an advantage. The Institutions and Hedge funds all short stocks and in the United States a retail investor can't short a penny stock unless he is an institution, Broker or a Fund. This puts the average investor at a disadvantage.
the fact that legal shorting requires the shorter must borrow the shares before shorting them is pure nonsense. It just isn't done and if it means money in the pocket of who ever shorts they will do what they have to do to make the money legal or not.
The solution is obvious. STOP SHORTING
I know the funds will scream at the thought of this because they make a fortune shorting money. the market is for all and all should have an equal and fair shake. Repeal shorting and make shorting illegal and a jail term penalty.

Thank you for listening.

Howard Haftel