Subject: File No. S7-08-09
From: Braxton Gilmore

June 27, 2009

Most if not all of the proposed rules to restrict short selling to an uptick standard (which is the best way to protect investors) are too hard too implement and enforce. Since it is difficult to establish the current bid or last trade on a stock so the uptick price can be determined, the best way to implement the old uptick rule is to use the previous days close as the determining factor. Using the previous days closing price, short sellers could only short the stock if it was trading above the previous days closing price. If the stock is trading above its previous days close, short sellers are free to sell on upticks or downticks, but if the stock falls to its previous days close, all shorting is stopped until it rises above its close. If it stays below its close, no shorting is allowed until the next day using the same rule. This is a very simple test and can be implemented and enforced easily. It implements the ideals of the old uptick rule yet allows short sellers to short as much as they want when the stock is above its previous days close.