Subject: File No. S7-08-09
From: Richard Gerdy

May 8, 2009

A follow up comment on the 'Uptick Rule".

There are a number of product types that allow short selling which have never been subject to a tick test. These products often have an exceptionally high average daily volume count.

Some of these products actually allow the trader to execute leveraged short selling by buying a product.

When the SEC implemented Regulation SHO, the tick test was dropped for at least 7,000 listed stocks. The regulation essentially democratized short selling.

If the SEC reimposes a tick test on these 7,000 stocks, the sophisticated short sellers will in no way be restricted from executing short sales without a tick test.

Undoubtedly this will increase volatility.

To those who argue for the reinstatement of the Uptick Rule, it may be worthwhile for them to revisit the Brady Commission Report on the 1987 Crash.