Subject: File No. S7-08-09
From: Ronald Crowell

May 5, 2009

The uptick rule MUST be re-instated, but must be applied to include all short selling - including those generated by entities such as the ultrashort ETFs. (Don't allow any more of these shorting "ETF"s, and get rid of those that exist now. They are contrary to the reason a free market exists.)

The application of the uptick rule must be written to accomodate the more rapid and voluminous electronic trading that existed prior to 2004. It should also be applied market wide, and definitions of limiting trades must be measurable and consistent so a trader/investor can rapidly know what to expect. I like the 'national best bid' price test over the flat restriction on late-day shorting or restrictions by percentage - if any shorting is going to be allowed at all (i.e. use a market based sale instead of a what ultimately is a stepped arbitrary regulated sale price - some stocks sometimes should be allowed to fall - but not be pushed).

Naked short selling should have an immediate and similar punishment just as insider trading has.