Subject: File No. S7-08-09
From: Gary Hagnauer, Ph.D.

May 5, 2009

Please reinstate the Uptick Rule or the modified Rule that employs state-of-the-art technology to prevent uncovered naked short-selling and abusive shorting (e.g., raiding) of corporate securities. Additionally, steps should be taken to limit exceptions to the Rule (e.g., ETF exceptions on double and triple shorting) which are used to get around Federal margin rules. Action is needed to stop abusive short selling, establish fairer Market trading and level the playing field for the average investor. Abusive short-sellers should be identified and, if possible, prosecuted to help bring confidence back into the Market and prevent further occurrences.