I would like to respond to one of the eight proposed rules concerning short sales.
Efficient markets require that prices fully reflect all buy and sell interest.
Short selling should be a crutch for market makers in a heavy volume situation, and in my opinion, should be flatted out in a matter of days to truly reflect the buy and sell interests. The NASD doesn't seem to know which is unacceptable in my opinion and am grateful someone is finally looking into this system which gives too much 'room' for manipulation. The current NASD rule does not provide an applicable model for this purpose, and I will give some suggested 'possible improvements'. The NASD requires members to regularly report their total short positions in all customer and proprietary firm accounts. This should be required in all trading venues.