March 2, 2009
Good evening,
The time for action, communication, and leadership are long over due. Conditions in our markets are deteriorating as a result of this absence of leadership.
I would like to suggest (as I did last year) the following policies that I believe would add stability and confidence to our capital markets:
1 - Bring back the "up-tick" rule. If not by 12 cents (as in back when shares were traded in fractions) then perhaps by 5 cents on the price per.
2 - Outlaw leveraged ETFs such as the Ultra-Short, Ultra-Bull type securities that promise 3x's the upside/downside of a particular index. This fosters a heard mentality (think how big the internet bubble would have gotten had these things been around in 1999, or how big the bust would have been in 2000 to 2002 had they been around). Simply put, it encourages dangerous and truly unnecessary risky or gambling-like behavior into our markets in my opinion.
3 - Elongate the trading hours for the capital markets in the United States. The 6 1/2 hour trading day was introduced at a time when logistics where quite primitive. Now in a global trading world, I believe that the shortened day leads to bursts in trading activity. Consider extending normal trading hours to an 8 hour day (9 to -5) and ended "after-hours" trading.
Thank you for your time and please consider these issues - sooner rather than later.
Regards,
Mike Abraham
West Henrietta, NY