May 4, 2009
Please reinstate the uptick test (former Rule 10a-1), based on the last sale price for all securities. This rule worked from its creation in the '30 until the SEC trashed it in 2007 and certainly had an effect when activated in 2008. The resulting raids from the discontinuation of the rule has discouraged individual investors like myself from the securities market and has driven most of us to cash positions. I am not willing to invest without a solid, proven approach against repeated short selling without controls.
I am not in favor of any of the other proposals since they are unproven.
Additionally, the SEC needs to step up enforcement of naked-short selling. Those that take risk by shorting a stock should absolutely have to cover that short as required. Otherwise the risk is mitigated at the expense of the honest individual investors.