April 30, 2007
It is simply amazing to me to see the the AMEX, CBOE, and some others try to persuade the SEC not to change the rules and get rid of the grandfather clause and options market maker exemptions. The reason? They are the ones committing the illegal trading and they know it. If the rules are changed then they cannot manipulate and destroy companies and the innoncent investors of this country any longer. The problem of illegal naked shorting has manifested too long into a problem of epic proportions in this country. We cannot allow these thieves to continue their activities. Many of those that oppose the changes, say there is no problem, or the problem is only short term. It doesn't matter whether it is short term or not, illegal sale of unregistered securities should be illegal and outlawed completely. Stealing is stealing. Cheating the system is cheating. Robbing innocent investors everyday is a crime.
If Reg Sho was working under its current rules, which obviously has major loopholes, that these options market makers are using to their direct advantage, then why are so many companies on the list? Why are they there well beyond the original 13 day period where actions were supposed to be taken to clear up the failures to deliver? Why can't invetors get their physical delivery of shares?
The far worst exchange is the AMEX which breeds this corruption in my opinion. I was told on the phone by their market regulations department, Jim Olema(spelling of last name may be wrong), that the AMEX did not have to police their exchange at all, and that is was the duty of the NASD to do that. So, the AMEX is allowed to just let whatever takes place on their exchange take place with no consequences to those violating regulations? The AMEX has no resonsibility as to what goes on ilelgally and they have to do nothing about it? I think not.
Is it right for an NASD representative, Michael Dantonio, to tell me that if shareholders want abusive trading and options trading abuses to stop, then the company needs to be taken private? I hardly believe that this was why the Securities Act of 1933 1934 were put in place? The NASD and SEC have failed miserably in their duties to stop the illegal shares from circulating, and it is time investors receive their support.
Yes, it is time for changes to Reg Sho and force the buyins immediately of all the millions and millions of FTD's that are present in our markets. I hope the SEC does the right thing.