Subject: File No. S7-08-09
From: john m toth

May 5, 2009

As an investor in the Biotech industy I have seen billions of dollars in investment capital wiped out by NAKED short selling and other nefarious means.
HERE ARE MY RECOMMENDATIONS TO LEVEL THE PLAYING FIELD FOR ALL INVESTORS, LONG AND SHORT, AND RETAIL OR INSTITUTIONAL:

1.) Reiterate the illegality of, enforce the ban on, and prosecute NAKED SHORT SELLING.

2.) Force Hedge funds, especially those that are SHORT SELLING oriented, to have to comply with the same trading rules that LONG BUYERS need to, as in:

a.) regularly reporting on current short positions
b.) having to settle all completed trades in three days

3.) Install an upbid rule for any short selling.

4.) Complement this upbid rule on short selling with a 10%, daily drop, circuit breaker on any individual stock.

Again, these changes are long overdue. It is not coincidence that the current decimation of the stock market began in the summer of 2007, at approximately the same time the previous uptick rule was removed. There may not be exact empirical evidence to pinpoint this cause and effect relationship, but there is an overwheliming amount of real world anecdotal evidence.

Best Regards,

John M. Toth