September 12, 2007
September 12, 2007
Dear Chairman Cox,
Ms. Nancy M. Morris, Secretary
Securities and Exchange Commission
100 F. Street, NE
Washington, DC 20549-1090
Re: Comments on Proposed Amendments to Regulation SHO
File No S7-19-07
Dear Secretary Morris:
I appreciate the opportunity to provide comments on the Commissions proposed amendments to Regulation SHO. I am a shareholder of a company that did not appeared on the Regulation SHO threshold list. Instead CMKM Diamonds, Inc, "CMKX" was "grandfathered" due to the trillions of counterfeit, naked shorted CMKX shares traded in the market.
My comments for this request for Comments of File S7-19-07 are supported by well-established common law. Aiding and abetting counterfeiting by Reg Sho grandfathering counterfeit/naked shorted air shares is illegal therefore, the amendments, by law, must be adopted. Also, for purposes of this request for comments, I restate here, every comment i've made in letters, e-mails in past requests for comments on this subject.
Therefore, I support the Commissions proposed elimination of Regulation SHOs options market maker exception and encourage the Commission to complete the administrative steps to accomplish this change as quickly as possible (e.g., within one week of this date). The options market maker exception has been a well known tool of manipulation and must be eliminated promptly to ensure a level playing field for public companies and shareholders.
I commend the Commissions recent action to strengthen Regulation SHO through the elimination of Regulation SHOs grandfather provision. I am also pleased that over the past several months that Chairman Cox has personally spoken about the abuses of naked short selling and the need to end this manipulative practice. However, I remain concerned that, despite the Commissions recent efforts and Chairman Coxs public comments, these abuses continue. Therefore, investor confidence in the market place has not changed.
The SEC needs to clean up the hedge funds, forcing them to operate ligitimately, in turn, the Banks will have to clean up their dirivities, in turn bringing value back to the U.S. Dollar and credibility in Wall Street. It's a domino effect, and naked shorting was the cause of it.
While the elimination of the options market maker exception and the grandfather provision will significantly strengthen Regulation SHO, these changes alone will not adequately solve the problem that results in continued naked short selling and failures-to-deliver. I request that the Commission (1) impose in Regulation SHO a requirement of a firm location of shares to be borrowed before a short sale can be executed, and (2) enable transparency by requiring timely disclosure of the volume of failures-to-deliver shares of companies on the Regulation SHO threshold list. The Commission should issue and complete promptly a notice of proposed rulemaking to implement these two critical components of effective Regulation SHO reform.
The SEC agency goal and mission is to protect investors from fraud. Nothing less than a speedy completion of this process will ensure investors that the SEC is compliant in promulgating rules and regulations within the authority legislated to the SEC by congress. I look forward to seeing the amendments published within a few days in the Code of Federal Regulations (CFRs).
cc: Christopher Cox, Chairman, U.S. Securities and Exchange Commission
Paul S. Atkins, Commissioner, U.S. Securities and Exchange Commission
Roel C. Campos, Commissioner, U.S. Securities and Exchange Commission
Kathleen L. Casey, Commissioner, U.S. Securities and Exchange Commission
Annette L. Nazareth, Commissioner, U.S. Securities and Exchange Commission