Subject: File No. S7-08-09
From: B H
Affiliation: IEEE

May 13, 2009

I would like to support restoring a version of the uptick rule to balance short selling. This is to limit the "piling-on" effect that exaggerates downside price swings.

Most especially I want to limit the illegal activity of "naked" short selling. The number of non-closing trades is powerful, compelling evidence that short sellers are illegally creating shares rather than legally borrowing the shares before selling them. In effect they are stealing shares through fraud that dilute existing share-owners and usurp from a company's management the right to control the number of a company's outstanding shares. In market terms naked short selling is creating a larger supply of shares while at the same time decreasing demand for shares thereby forcing lower prices fraudulently.

The uptick rule should be reinstated and the laws against naked short selling must been enforced. Enforcing the law is the only way to maintain a rule of law.