June 6, 2008
SEC I have no illusion that any concrete changes will materialize in your final rules on Naked shorting. This SEC administration revisited the shorting only on the uptick rule of the great depression era and CHANGED it and gave a very effective tool to Naked shorters. Time will prove that that rule should have been left alone. It has also been the SEC position that 'there is evidence that this change in rule has affected only the small cap stocks adversely'. So what was SEC saying? Do not trade the small caps because short sales with the new uptick rule will devastate the stock price for longs and that is okay? In future when you change a rule we have to ask that you keep every market participant's be it small cap, medium cap or large cap stocks' interest in mind. It is not far fetched to imagine that the change in uptick rule camp must have been campaigning since the great depression era and failed with every SEC administration except yours. That should give a clue to all the commenters here which way the wind is blowing. Expect a much watered down final rules on Naked shorting that in effect will amount to a hand slap on naked shorters from this administration.