October 6, 2007
I appreciate the opportunity to voice my appreciation that the SEC will look at removing the OMM exemption in order to enforce the protection of all investors in our stock markets.
I have read several comment letters from those concerned about losing liquidity in the markets with the removal of the OMM exemption. I must say that I have lost liquidity in my own investments. My investment accounts are down about 90% this year with the help of the OMM's ability to manufacture liquidity. One could blame the failure of the credit markets. Others could blame a failure to be more diverse. Yet others could point to an overwhelming amount of liquidity made available to short a stock in an attempt to bring it to bankruptcy. Currently that stocks stands about 85% short and has gotten a privileged seat on the SHO list since the early part of this year. (Did have a quick removal while it went through a reverse split.) I have been amazed at how many times the market cap has traded, again for liquidity.
Meanwhile the SEC continues to pretend it is finding the Martha Stewarts of the world or fining companies that are able to deny wrongdoing, but pay fines anyway.
I would ask, if you cannot restore the liquidity to my account by enforcing laws that were created in the 1930's to prevent these shenanigans, could you point me to the job listing that SEC officials receive for employement positions after leaving the SEC? It might offer access to where my liquidity has disappeared.
Please remove the exemption