Subject: File No. S7-08-09
From: Scott Kaufmann
Affiliation: Investor

May 5, 2009

As a free market capitalist/investor, I do not like excessive market regulation. However, in the case of leveraged option trading, there are circumstances that benefit a select few who are able to execute trades on a magnitude not available to the individual investor. While these trades may benefit a select group of individuals, the consequences to a larger group of long term investors is much larger. The disparity of perspective, and trading objective between "investor" and "trader" in the current market without such "uptick" regulation has unfortunately led to an artificial degradation of value in many equities, hurting long term investors and American families. This rapid manipulation of the system, although technically "fair" and "available" to savvy traders, has shown itself to be detrimental to the overall market condition, and long term investment approach taken by many personal investors. For long term market growth and stable appreciation, having an "uptick" regulation in place will be beneficial in market movement stabilization, allowing individual investors to act appropriately, investing based on company fundamentals and sound investment principles, rather than swing movements under the artifical influence of leveraged trading. While we certainly should not impose regulations for the sake of regulating, we may want to consider trading rules that encourage long term fundamental investing.