July 21, 2008
Amendment to Regulation SHO
File No.: S7-19-07
You can, and you must, do the hard work to end the market manipulation of our securities. Our economy depends upon it.
We need appropriate enforcement, and smarter regulation by the SEC. Violations need to be prevented before they occur. You already have the rules to enforce.
The Options Market Maker exception must be withdrawn. Pre-borrow for each and every market must be enforced. That is now your first priority and will remove much of the volatility that we see daily. Of course, the real prize in doing that will be the demise of the counterfeit shares.
The uptick rule must be revisited preventing the systematic share price deterioration that we see occuring daily, hourly on various charts. Is it market manipulation? Yes.
Countries around the world are taking a harder stance with short selling, and strictly enforcing rules against short selling without a firm pre-borrow.
I believe India allows naked short selling. And the United States of America allows naked short selling. The rest of the world gets it. They all realize that without enforcement of rules preventing this criminal activity, their economies will be ruined.
Will our country be the first to wallow in a deep depression after a select few make billions, trillion of dollars? What will be the value of the dollar? Foreign companies, foreign currency will be the new owners of our USA born corporations.
Enforcement is necessary. It isn't enough to have the rules, which you already have. It is necessary to make strict penalties for any infraction. It is a war.
Do your job.