July 1, 2008
SEC should pay special attention to numerous DR.Jim Decosta's comments here. They are not only informative but are also suggestive of many solutions to combat naked shorting. Commenter Gene Arensberg is right. No solution is complete without elimination of market maker exemption rule(proposed rule 34-56213 of August 7, 2007). There is no final rule yet even after 11 months on that proposed rule. I see numerous meetings and representations from CBOE, Wolverine, Citigroup, Credir Suisse, Deutsche bank, Lehman Brothers, Merrill Lynch, Pierce, Fenner and Smith etc. on that proposed rule. Are these market maker firms that want to play god as usual(powers bestowed on them by SEC) with naked shorting (did they lobby for maintaining status quo on that proposed rule?). Why haven't SEC decided on that proposed rule and when is SEC going to decide on this Anti-fraud rule? Millions of average investors are loosing money everyday