July 21, 2008
To the SEC:
It is a shame the Commission has continued to fail to simply enforce the existing regulations against NAKED SHORT SELLING, a practice harmful not only to individual investors, but to our economy as well.
I support elimination of the Market Makers exemption.
I support amendment to rule 203(b)(3)(iii) of Regulation SHO - completely eliminating the close out exemption for option market makers as proposed (not alternative 1 or 2).
I support amendment to rule 200(g)(1)which will require a "locate" on short sales securities and proper marking of sales as "long" or "short".
I also support amendment to rule 200(g)(1) proposed in the second round in release 34-56213 File No. S7-19-07 because equity investors are being harmed from mismarked sales as "long" when they are NAKED short which counterfeits shares--an illegal activity.
In the event of failure to amend rule 200(g)(1), please make and release a cost analysis incurred by equity investors.
The SEC must do a cost analysis incurred by equity securities investors if you do not eliminate the market maker exemption as your new data clearly shows the fails are being produced by invoking that exception which, in turn harms equity investors.
I continue to fail to see "why" the SEC, which proclaims on it's website how it is dedicated to protecting investors, continues to fail to enforce just the rules, regulations and laws CURRENTLY on the books.
The regulators, through their negligence to enforce these Naked Short Selling activities, are killing both small, private investors and our economy. Perhaps if you aren't up to enforcement activity the FED is better able to handle this.
In an effort to help protect my investments from the financial rape taking place, made possible by what appears to be a collusion amongst the regulators and ILLEGAL NAKED SHORT SELLERS, especially in the smaller capitalized companies, I have proceeded to take possession of my stock certificates. I look forward to the day when this matter is CLEANED UP and my confidence in the system restored enough to redeposit my holdings into my brokerage.