September 22, 2008
To: Christopher Cox
Chairman, SEC
Washington, DC
I strongly suggest you reinstate the uptick rule which prohibits short selling of ANY stock when the price is declining. This rule was in effect until July 2007. At the time I knew the rescision would lead to more violent market swings, especially downward. This is exactly what has happened.
When short selling can't be done at a time a stock's price is declining, this greatly reduces downward pressure on a stock price and, in addition, stabilizes the stock market in general. When one stock starts plummeting, others tend to follow. Reinstating the uptick rule would stop this process altogether and restore some stock market stability.
Sincerely,
Robert Pegram