April 30, 2007
The following are my comments on the "Amendments to regulation SHO" as proposed by the SEC on July 14, 2006...
Regulation SHO includes the grand-fathering of a large amount of "shorted" shares that failed-to-be-delivered. "Naked Shorting" by the hedge funds and several large brokerage houses is clearly rampant and evident based on the trading patterns for all to see. The SEC is supposed to be a government watch-dog put in place to protect ordinary investors such as myself. The SEC can open the books on any company that has been alleged to be naked shorted and put this question to rest, yet it has not even in a single case. Why ?????? How can you continue to ignore the transgressions by powerful wall street interests who are instrumental in creating these FTDs and the rampant naked shorting of stocks, especially of emerging companies on the Bulletin Boards ? You must see the hand-writing on the wall to avoid a complete overhaul of the SEC if the public's outrage on this subject is allowed to simmer any further. Please clamp down hard on all the wrong doers who have violated the rules and restore the public's trust in a free and fair stock trading system in the United States. Please do what is necessary to clean out the system of greed and nepotism so that the U.S. markets are once again viewed as a free market and a beacon of hope to the rest of the financial world. Get rid of your "illegal" grand-fathering of FTDs immediately without any delay and punish the guilty severely for flagrantly violating the laws already on the books. Thanks much for your prompt attention.
Arun V. Someshwar, Ph. D.
Principal Research Engineer
National Council for Air and Stream Improvement, Inc. (NCASI)