May 30, 2009
I urge the SEC to reinstate the Uptick Rule regarding short shelling stocks. This long standing rule has provided some balance to a system which is already overweighted in favor of traders at the expense of investors. The cancellation of the Uptick Rule has substantially contributed to the panic in the last year. While short selling provides systemic benefits, it also can be an unnecessarily destructive force for underlying companies and their investors. The instantaneous short selling driven by computer programs needs to be interrupted for the sake of the whole investing community. Complaints that these computer programs cannot adjust to the Uptick Rule requirements are self serving and transparently false.
Please do not solely rely upon statistics solely from the recent bull market. The stability of the system is of greater importance, and securing the trust of all investors, traders, and the general public. Half measures in the spirit of compromise are inadequate to address this problem.
I will also add that the fraudulent practice of "naked" short selling should be ended immediately, and all in violations be prosecuted to the fullest extent of the law.