Subject: File No. S7-08-09
From: Edward L Behen

May 8, 2009

Removing the "Up Tick" rule and allowing stock to be sold without any requirement that the underlying stock be committed to the transaction has been very disastrous to the many stocks. Minimally these requirements should be restored and non-compliance should carry extreme penalties without legal recourse. Penalty payments should be paid directly affected stock market company, not the the investors. And thus would aid in restoring the true stock value.

But better, yet: Why not completely eliminate short selling and only allow Puts and Calls for stock not being held by the brokerage house. And to SELL a stock, the underlying stock must be held by the stock broker at the time of the sale. No exception. With extreme penalty for non-compliance by a brokerage house.

A long time ago, physically holding stock certificates was fairly normal. This no longer the case, and insisting the stock be held by the brokerage house at time of sale should be perfectly acceptable.

Private Investor