Subject: S7 08 09

May 5, 2009

Both the "circuit breaker" approach and the "restrictive price test" methods will do much to stabilize markets in volatile times and discourage the current trend of collusive short selling by hedge funds. Suspension of the uptick rule was a major mistake based on flawed market philosophy and counter to the purpose of balanced pricing and market efficiency. There can be no question in hindsight that the equity market declines of the past 18 months were driven by massive shorting, and that the banking crisis, at least partially, shows signs of manipulated selling. It is a violation of fiduciary responsibility to allow such conditions to go unchecked. Restore the uptick rule, use the circuit breaker to hold net asset values at fair levels, and combine this with the restrictive price test to protect NAV and restore market equilibrium.

Philip Trupp
Washington DC