Subject: File No. S7-08-09
From: Nicholas Pomato
Affiliation: Scientific Director, NVITAL

May 6, 2009

There is absolutely no valid reason for maintaining the currrent relaxed rules on short selling. It has been shown conclusively that entities (such as hedge funds) with access to large sums of money, can use unrestricted short selling to manipulate the maket. This puts the average stock market participant at a competitive disadvantage. There are stringent rules governing access to "insider" information because it offers an unfair advantage to all investors yet we do not seem to be concerned about the unfair advantage created by the lack of regulation of large revenue holders to manipulate the market through short selling. The freedom to perform short selling with minimal regualtion is not acceptable and should be stopped.