March 3, 2009
In regard to your previous statements concerning studying the potential reinstatement of the uptick rule.
As we obviously lack confidence in our capital markets and leadership is questioned on a daily basis, it would seem prudent for your office to provide a clear and concise response as to why the uptick rule has not been reinstated to date.
Understanding that issues concerning fraud and the potential prosecution of ponzi schemes et al are also of primary importance concerning the quest to restore confidence, clearly priority has been placed in this area.
The capital markets represent the inherent psychology of the investment community and currently speculation and momentum rule the days trading, the investor class distrusts the market, its participants, and the corporate executive suite. Many feel as though advantages lie with those that are able to manipulate current rules in their favor, in particular through the ability to naked short and the lack of enforcement concerning this practice.
As the Fed and Treasury work to strengthen the banking system, it would seem prudent that your office would immediately reinstate the rule in a coordinated effort to aide their efforts while helping to restore trust.
This crisis daily takes its toll on many, there are many things in which we lack the ability to control, but, those things that we have the ability to change, should be changed immediately to provide a better system, and one which presents our markets as leading throughout the world. One which protects its investors and puts all participants on an equal playing field.
I think it beyond comprehension that the uptick rule has yet to be reinstated, but, would like a clear understanding of your decision to neglect this to date.
Thank you for your time,