May 30, 2009
I understand that the SEC is studying and debating the enactment of some form of short sale regulations, this should be done immediately.
The equity markets did not function well during the recent financial meltdown. Though at times the markets provided needed liquidity, unrestricted short selling may well have contributed to the steep decline of many securities. Without an "uptick" rule and assurances that securities are available to be borrowed before those securities are sold, the equity markets are in danger of being manipulated.
It is time for the Commission to regulate and oversee the equity markets in order to restore and maintain investor confidence. Small investors need to be protected from the unbridled overreaching of those who may seek to abuse a system that is not regulated to prevent questionable, if not borderline methods of market manipulation.
Without a return to the basic concepts of the uptick rule and assurances that all who participate in the practice of selling short are required to abide by the same rules, whether the transaction is large or small, then it will be difficult to restore the confidence of investors.
Please act swiftly to reinstate the "uptick" rule and to prevent "naked" short selling.