Subject: File No. S7-12-06
From: Richard Calderone

July 27, 2006

Shorting stocks severely hurts the small long term investor. Shorting is a form of trading that intentionally attempts to significantly lower a companies stock price for ones personal profit. Shorting should be made illegal. Further, hedge funds should be band or fully controlled under SEC regulations. There is an enormous amount of market manipulation occuring everyday, which I believe the SEC is aware of, but fails to do anything about because it is so rampart.