Subject: File No. S7-08-09
From: Azhar Mir, MBA, CIA, CISA, PMP
Affiliation: Consulting

May 12, 2009

It makes no sense to ban short sale. People shorting are some of most sophisticated traders who know how to value a security. They provide balalnce to supply and demand to price the security at the right value. They act as counter checks on people who are trying to pump and dump the security or price it beyond the intrinsic value. Short sellers cannot single handedly manupulate the market.

If shorting is to be banned, then so must be seconadry markets. Put options should not be allowed either. Also ETF such as SDS, QID, SKF etc. must not be allowed to trade.

It is not appropriate for regulating agencies to interfere too much with the free markets. Capitalism in USA has already been compromised during the past years under Bernaki, Paulson and now under Obama administration. Please refrain from interfering any further and let the free markets and capitalism work