February 25, 2009
I am a retail investor and hold shares in the Canadian Banks.The Ontario Securities Commission has re-instituted the UPTICK rule in Canada regarding short selling.
PROBLEM..... because the canadian bank share which I hold are Listed on your exchanges as well as the Toronto Exchange the UPTICK rule regarding Short Sellers does not apply. Shorts can attack my Canadian Bank share on both exchanges and not have to follow the UPTICK Rule.
BAD SITUATION.... While the Fed is doing everything it can do to shore up the U.S. major banks, the short sellers are having a good time shorting the Banks and driving them into the ground while they make money on a sure thing as they can see what is going to happen ahead of the time because of the Fed involvement and all the transparency which is necessary. Once the Shorts are finished driving the U.S. Banks into the ground then they will be able to turn on the Canadian Banks with no restrictions and you can imagine what will happen with our listed banks that will have no defence against these huge money managers.
REQUEST..... Why have you not REINTRODUCED the UPTICK RULE FOR SHORT SELLING? The rule was previously in place for decades and served the markets well and resulted in it being a lot more difficult for the shorts to constantly attach a target when it is down.Please reply and tell me you are doing more than just looking and studying this rule. Put it back in and save us small retail investors from these huge monsters who have convinced you that the UPTICK rule was not necessary. Perhaps short selling needs to be halted again for awhile until all of the regulations are looked at.
Look forward to your response and positive action.
Robert Lounsbury
Toronto Canada