Subject: File No. S7-10-10
From: Paul Drescher
Affiliation: Registered Principal, Foothill Securities, Inc.

May 28, 2010

I wholeheartedly support the proposed registering of large traders as the necessary first step that will enable the SEC to maintain trustworthy markets in the new electronic age.
Additionally, regulations should require the stoppage of all programmed computerized trading, and institute size limits on orders placed when certain "circuit breakers" are in effect. For instance, prohibit orders of actual or notional value more than $5,000,000 when the Dow, SP 500, or Nasdaq index has dropped or risen by more than 3% intraday. This would slow down trading and allow human intervention, the common sense of the public, as well as the SEC and the US Treasury to intervene, if necessary, to maintain orderly and functional markets.
I am opposed to complete closing of markets except in the most extreme emergencies. The system must simply be slowed down enough to allow humans to outsmart the machines.
I believe that the regulations should include a mandatory 100% penalty of all gains achieved in violation of the regulations, plus penalties for flagrant disregard of the regulations. Aggressive enforcement of the regulations would help restore public confidence in the SEC and the financial markets.