Subject: File No. S7-12-06
From: Jody Cox

March 27, 2007

I am a small business owner and investor. The more I learn about the regulation of securities the harder it is to undestand what happened to true economics and true market value. With the grand father clause in Reg SHO it has effectively permitted counterfit securities to exist and go unsettled. What happened to "Supply and Demand" that is what drives economic markets not this so called market liquidity which alows dilution, devaluation and is price manipulation in its most refined form.
In recent months more attention has been placed on the booming Asian markets. If we do not get our act together our economic power will deminish greatly.
The biggest difference I see is instant clearing overseas. Why is that not possible here? How can you sell something you dont have and why would we "Grandfather" those who have for years in most cases.