Subject: File No. S7-08-09
From: James Werley, CFA

May 13, 2009

Restrictions on short sales are detrimental to the smooth functioning of financial markets. The term smooth is selected to highlight liquidity and access that is a hallmark of properly functioning markets. Just as futures exchanges have moved to eliminate daily limits on major commodities, there should be the opportunity to transact regardless of the volatility or price action. Restricting capital flows via short sale restrictions UNDERMINES confidence that the markets are open and functioning.