Subject: File No. S7-08-09
From: Lawrence Cox
Affiliation: Professor of Finance, Strayer University

May 8, 2009

Without an uptick rule, naked short selling becomes in effect a derivative transaction, thus injecting into a tangible capital market added elements of risk and volatility without accompanying transparency. There is already a market for such derivatives, the public options market, where hedgers and speculators can operate within their own risk environment. Bringing back an uptick rule will add an element of credibility to a stock market in need of greater confidence from the investing public.