Subject: File No. S7-30-08
From: William Jones

April 8, 2009

In mitigating the risk "et al" the concerned market freedoms of this country should equal the playing field for all investors...
It should be proposed that no one can "short sell" no more than 200% of amount of shares that they already own or no more than 10% shares value in cash available within any account if one does not own the stock..

1) Joe owns Company "XYZ", 100 shares..
Joe can short sells only a maximum of 200 shares "XYZ" in this single account...Joe waits to see what to the market runs it's course. At the end of the day margins calls or puts..The rest is valuation calculation as normal shared account...
2) Joe does not own Company "XYZ" but he believes it will go down. Joe has $1000.00USD dollars cash in this account.
Since Joe does not own the stock he can only short sell company "XYZ" to $100 dollars of share value of "XYZ" if "XYZ" uptick price is $10.00 USD at time of Joe's exchange, he can only short 10 shares of "XYZ"....At the end of the day margin calls or puts as normal. All non-ownerships short sell losses or gains to be settled ending on the close of the next available "Monday" ...if no buy back of the shares are exchanged...Brokeraged accounts must be settled within their own accounts within one calendar month. Naked short sells are limited to all parties involved.

These two examples mitigate the gain to loss contraction on both ends of the risk. Double blind upticking is limited to cash on hand per account and can only be factored at the end of the day per account..once a "short sell" has been registered on the account..that account is limited and sealed until as in closure.
Example 1 Joe has zero "XYZ" shares or as in
Example 2 Joe has to maintain margin cash within this account to settle. In both examples( garnishing and or property sells maybe necessary if/ or until Joe buys the stock back at a gain limited to $100.00USD if the stock goes to zero...

Short selling must be limited by the cash available within a single account. And 10% limit is well within the intent to mitigate valuation..