Subject: File No. S7-19-07
From: Larry Gadbois

July 8, 2008

I have read and support the enactment of the proposed amendment to rule 203(b)(3)(iii) of Regulation SHO that eliminates the close out exemption for option market makers.

I also support the enactment of the amendment to rule 200(g)(1) that requires broker-dealers to document the location of a security related to a sale marked long and, in doing so, determine if the customer is deemed to own the security within the meaning of Rule 200(g)(1). If the broker-dealer could not document the location of a security related to an order marked long, the broker-dealer would be required to mark the sale short.

The delays and extensions of the comment periods for the amendments to the Reg SHO regulation have been excessive, and have allowed much continued damage to the U.S. security markets. I requested that the SEC eliminate further delays and take prompt action to close the loopholes that are allowing the theft of value from the investors that you are supposed to protect.

The uptick rule should be reinstated immediately. The options market maker exception that allows the sale of unregistered securities in the interest of liquidity should be totally eliminated. This exception will continue to be abused, and delivery fails will continue to accumulate as long as this practice is allowed to continue.

Sincerely,
Larry Gadbois