Subject: File No. S7-08-09
From: William R Hartley

May 8, 2009

I have heard comments that the uptick rule is not necessary as it promotes a "free market". I disagree. Ever since the uptick rule got pulled back in July of 2007, volatility has increased in the market. When volatility increases, fear sets in. I have heard the argument that if we do an uptick rule that we should do a downtick rule. Let me give an explanation figuratively speaking. If someone goes into a public theatre and yells "fire", what is going to happen? People are going to panic What is the opposite of yelling "fire" in a theatre? There is no opposite. So yes, the uptick rule is necessary. As Mr Schwab said:

"It may be too late for the restoration of the uptick rule to have much impact on where we are today. But there is no reason to wait and we need the protection in place for the future. It is time to restore it. It's what our grandparents did for us in 1938, and it worked for nearly 70 years. With that kind of track record, we should tip our hats to the regulators of yesteryear and acknowledge that they had it right all along."

I am going to attach some interesting info I found on the internet once the uptick rule was pulled. Although it was mentioned there is no "empiracle" data the graphs clearly indicate increased volatility and an instant decline in the DJIA non block money flow.

One last thing. Good in theory, does not always materialize in reality.


William Hartley

(Attached File #1: s70809-1699.pdf)