Subject: File No. S7-12-06
From: Debra K Carlson
Affiliation: Correctional Officer

January 31, 2007

The "grandfather clause" needs to be eliminated in regulation SHO. You need to refrain from imposing double-standards - you need to do the job according to what is right - protect the investors not the ones profiting from illegal counterfeiting such as naked shorting of stocks. This practice has hurt alot of what investments we have, and has hurt my family financially.