The Hill News

I have been a “Public Member” of the Securities Industry Conference on Arbitration (SICA) for 35 years and its Chair for the last seven years.  SICA’s main goal has been to reinforce the public’s trust in the integrity of our securities markets by insuring that a level playing field exists for the resolution of disputes that arise between the investigating public and the securities industry. 

Accordingly, about 2 ½ years ago I wrote the SEC expressing my grave concern regarding indiscriminate and abusive short selling which caused havoc with so many securities during the 2008 market collapse.  I suggested the “up-tick” rule be reinstated for short sales â€" a rule which acted as a natural brake to abusive short selling for decades after the Great Depression. 

Unfortunately my suggestion went unheeded, and short sellers have continued to add to the extreme volatility prevalent today in our securities markets.

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