Subject: File No. S7-08-09
From: Larry L Grayson

May 5, 2009

The uptick rule should be put back in place just as it was. After that if modifications need to be made they can be made.
For all the reasons that the uptick rule existed, it should still exist. Traders and investors DO NOT panic buy a security and drive it up unreasonably. The converse, however, is not true. Panic selling does take place.
Any security that goes up in value more rapidly than it reasonably should will come back down in a relatively short amount of time. Securities that go down faster than the fundamentals dictate can and often do go down further and stay down longer.
SILLY AS IT SEEMS THE OLD ADAGE THAT 'IT TAKES 10 POSITIVES TO OVERCOME ONE NEGATIVE" WORKS tremendously in the favor of the short sellers. Without and uptick rule in place, as could be witnessed last Fall, what appears to be a level playing field always is tilted to the favor of the short sellers. The uptick rule helps the markets do what they are there for, go up, without free-for-all short selling driving it down for NO good reason.
Eliminate naked shorts and double and triple short ETFs.
Perhaps this discussion would not even be necessary had the 'rules' been followed even after the uptick rule was eliminated.
I want to see some people prosecuted for the wanton destruction of wealth that took place last fall.