Subject: Short sales of equity securities

July 15, 2008


Events over the past year have given our securities some of the greatest volatility levels we have seen in recent memory. Despite the levels of capital available for market making purposes, sharp price declines followed by less frequent but still violent rebounds have frightened investors, impaired the normal price discovery functions of healthy markets and led to consequences felt in the real economy.

I was pleased to hear just today of the special provisions that will be enacted regarding short sales of stock in Fanny Mae and Freddie Mac. I hope that similar restrictions will be applied systematically to many other securities whose value has been damaged by unfettered short selling.

I also request that the Commission consider the reinstatement of the uptick rule that applied to short sales of stock prior to its being abolished one year ago.

Thank you, Laurence D Chapin