Subject: File No. S7-08-09
From: Robert DePalo
Affiliation: Chairman Arjent

May 15, 2009

The problem with the shorting of equities is relativity easy to fix, but the Regulatory refuse to enforce the illegal activities of Non- Professional Traders and Hedge Funds.

1) Shorts are needed to create a stable and fair market. Without shorts, the market would unfairly run up and investors wouldnt be protected from possible manipulation.Shorts take the same risk as Long Investors. However, Regulators need to enforce NAKED SHORTS.Naked Shorting is the practice of selling stock havent borrowed or have access to. This can and has destroyed many companies, fore the market can actually end up with more shares sold short than the actually float. This issue needs to be addressed and enforced.
2) The Up-Tick rule is helpful, but not necessary for the reasons explained above. Just like the Long Buyer, the Short Seller takes risk and as long as he borrowed the stock and the float isnt falsely increased all is fair.