Subject: File No. S7-08-09
From: Don Emerson

May 5, 2009

As a frequent private small investor, I do not understand why the uptick rule was repealed in the first place. Please reinstate some version of this rule as soon as possible Further, please stop the practice of excessive naked short selling. This practice is extremely harmful to small investors, as well as to many others. Brokers,etc., should not be allowed to take shorts on shares they do not own - period. Take the 3 day grace period on this away as well. They should have to own the stock at the time of the short
This restricts any investor to only be able to short shares owned by the broker - not my shares. Hedge funds and many others(investment houses,etc) can use massive financial leverage to massively short a stock and there by manipulate its price at any time. This is an extremely unfair practice. The playing field is not level for the small private investor. Confidence in the market is being
destroyed by these unfair practices.