June 12, 2009
Mrs. Elizabeth Murphy
Secretary, Securities and Exchange Commission
100 F Street, NE
Washington DC, 20549-1090
File Number S7-08-09
Dear Madam:
I am writing in reference to rule change S7-08-09 to Regulation SHO under the Securities Exchange act of 1934. The downtick rule for shortselling will accomplish nothing positive, and be a detriment to free markets and the way equities are traded. In a free market, people are free to buy and short as they choose. Stock prices may become artificially inflated leading to a future "bubble" effect. Currently, the market is very calm and orderly because of the current system. Upsetting the natural homeostasis will be extremely detrimental in the short and long term.
History has shown that markets periodically correct themselves to ensure fair prices. Limitting short sales will cause more price discrepency leading to more frequent and sizeable corrections, which may cause chaos in the marketplace. The market has been efficient for many years, and will continue to do so as long as the marketplace is free to set fair prices. Please consider the dangerous effects of limitting short selling. Thank you for your time.
Sincerely,
Michael Queller
Registered Principal