May 5, 2009
Thank you for the opportunity to be part of the public conversation regarding short selling. I feel the repeal of the uptick rule was one of the major factors that caused the current recession.
The SEC should enforce a regulation that requires sellers first pre-borrow shares of a stock before short sales are executed. (For example during the fall of 2008 rules were implemented on specific financial stocks)
Short sellers should only be allowed to "Short a Stock" that conforms to a "Short Sale Price Test". The "Short Sale Price Test" should be based on the national best bid in a particular security for the remainder of the day if there is a severe decline in price in that security (a proposed circuit breaker modified uptick rule).
Please level the playing field. I am a retired and I limit my investments in stocks because I don't feel I have a fair deal.
Robert E. Adams