Subject: File No. S7-08-09
From: Gene Liskiewicz
Affiliation: Retired/Independent Investor

May 10, 2009

First of all, I should say that I am a follower of Jim Cramer and feel that he should be consulted on many of these matters - he understands the system and appears to be a champion of the stock market and the common investor - I can only hope that the governing institutions have this mindset as well.

Regarding the uptick rule, I feel that it should be reinstated as it was prior to its elimination - to have eliminated it based on stock performance in a good market was irresponsible.

Regarding naked short selling, I feel that this process needs to be totally eliminated. If the seller cannot locate stock to borrow to short, than he should not be allowed to short.

Regarding collusion among short selling hedge funds, I feel that the technology exists for the SEC to ensure that this process is monitored and stopped and offenders severely penalized.

Regarding hedge funds with a "short" focus, I am concerned that they can make outsized bets and if they go their way, they win big. If they lose and go bankrupt, who buys back their shorts?? The US taxpayers?? If that is the case, should they not be required to provide additional collateral??

Regarding double and triple short ETFs, you need to ensure that those products comply with a new uptick rule and the enforcement a ban of naked short selling - if not, eliminate them.

Regarding executive compensation, I feel that the top executives should not be paid with stock options but rather stock purchased on the open market which is placed in a account which vests over time - say, 5 years. This would be an important step in aligning the executives' interest with the stock holders.

I think we all understand that there is a role in the market for short selling, but we are also concerned that there is plenty of room for abuse.