August 18, 2009
Abusive short selling is a major problem that must be addressed. The alternative up-tick rule that only permits short selling at an increment above the current national best bid must be implemented immediately. It will prevent abusive and manipulative short-selling and, when adopted, will definitely improve my confidence as an investor—knowing that some stock manipulator, or group of manipulators, cannot hammer down the price of a company to destroy the real value of my shares or run me out of my shares so they can cover their shorts for their slimy profit.
Keep the alternative up-tick rule clean and simple to implement—no weasel room. The tick test must be based solely on the current best bid price for a stock, and executed immediately, with no delay to fill lower bids. The tick-test rule must apply to all stocks at all times, with no circuit breakers.
As for confidence, the above would go a long way toward making me fell like the S.E.C. was actually looking out for my best interests as an investor. I am also confident that the up-tick rule will provide the price efficiency and liquidity necessary for me to execute my own short sales.
An up-tick rule served investors well in the past, and must be reimplemented as soon as possible. Quit stalling
Thank you for listening