Subject: File No. S7-08-09
From: Anthony Giancola, CGA

May 5, 2009

The events of the past 18 months prove short selling only serves to disrupt markets and limit liquidity. Times have changed, this is not 1920. Unlike that era, very few people today can control large sums of money and information, whereby a concerted effort from the few can cripple large organizations and wipe out millions of shreholders.
The markets would best be served if short selling was banned altogether. Last I checked capital markets serve to raise capital and increase wealth. Short selling does neither.
At a minimum, the uptick rule should be reinstated and limit short sales to never exceed 5% of a company's outstanding shares. We have seen during this crisis where shares shorted numbered more than a company's total outstanding shares. Nothing good can come of a situation like that.
Please, make the correct choice and forget the complicated options you are considering that will only put small investors at a greater disadvantage than they currently are.