Subject: File No. S7-12-06

January 2, 2007


This letter is in response to the request for comments concerning the proposed amendments to Regulation SHO, specifically the grandfather provision and why it should be eliminated.

First and foremost, the Commission should consider its position and recognize that it does not have the legal authority to determine which illegal acts should or should not be forgiven, which it has done by implementing the grandfather provision in the first place.

As you are aware, failing to deliver a registered security is illegal, regardless of when the transaction or lack there of took place. The Securities and Exchange Commission cannot simply sweep this issue under the rug and hope that the investing public is going to sit idly by, as you continually allow corrupt broker-dealers to pillage our financial system and systematically destroy the integrity of our markets.

Apparently, common sense is not a strong point at the SEC or you have become so complacent in your role, that you have forgotten the primary objective of the SEC, which is to protect investors and maintain a fair and orderly market.

To date, numerous proposals have been forwarded to the SEC for action. Please reference NASAA letter, dated October 4, 2006 from Joseph P. Borg, NASAA President and Director of the Alabama Securities Commission.

Mr. Borg and his staff should be commended for their actions and for providing the SEC with a clearly thought out, direct approach to eliminating illegal activities from our markets and one that will force those who have manipulated our markets to take responsibility for their actions and right the wrongs of the past.

The time for debate is over. Eliminate the grandfather provision and restore investor confidence.


Martin R. Crawford

Christopher Cox, Chairman
Paul S. Atkins, Commissioner
Roel C. Campos, Commissioner
Kathleen L. Casey, Commissioner
Annette L. Nazareth, Commissioner