Subject: File No. S7-08-09
From: William H Inglis

May 28, 2009

Any rule that encourages capital formation vs short term especially intra-day trading helps the process. Americans want every advantage offered by other world markets and the tailoring of any change in regulation requires world-wide consideration of the effects of a new rule. Borrowing or renting shares to a short seller, naked short selling, and concerted shorting by a 'group' of 'like minded investors' when a stock price appears to be falling are three "advantages" that have been abused during our recent history. Returning the uptick rule will have a slight positive impact on those practices.
Additionally the use of sovereign funds and other blocks of capital to game the market, using the above mentioned and other techniques, threaten market participation by small investors.
If small investors leave the market the political underpinning of capitalism becomes suspect. Keep always in mind that the basis of the market is to raise money for the companies that will improve life for the country, not line the pockets of individuals who have learned how to game the system.