July 17, 2006
Re: Comments about proposed Regulation SHO changes
Your proposed changes to regulation SHO don't go nearly far enough. These "proposed" changes demonstrate that you either do not care about the individual investor or you truly do not understand the magnitude of the problem. Giving market makers 13 days after a security hits the threshold list to close the position is absolutely outrageous. There is NO EXCUSE whatsoever for allowing that length of time. The solution to this problem is VERY SIMPLE. IF the selling institution does not provide the purchased shares in 5 days, a forced buy for the seller by the clearing agency should occur. Your window dressing of this problem continues to show you are not protecting the interests of small investors. The cosmetic changes you propose will do nothing to stop the problem. You should all be ashamed of yourselves for allowing the ripoof of small investors. I would not be able to sleep at night if I was an SEC employee. WE will not let you bury this problem.