July 9, 2008
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 am writing this letter to make you aware of the criminal system that exists in todays stock market. This is not a market of supply and demand as the criminal Market makers and Hedge funds have torn it apart. The stock borrow program is nothing but a scam. The NSCC who is the buyer for all market participant sellers and seller to all market participant buyers guarantees the settling and allows Naked shorting to take place.
Naked Shorting is the counterfiting of securities.The Secret Service and the Department of Justice should be shutting down these criminal operations of this clearing system. You the SEC has failed to do its job by allowing all these companies to disappear into thin air.
You are yet to Investigate the Tragic destruction of Bear Stearns. Naked Shorting stocks and having no intention to buy them back means you are allowing these criminals to print cash as in counterfeiting and never having to pay for it.
I am taking this opportunity to comment on the Commissions proposed amendments to regulation SHO which should be eliminated promptly.I am a CMKX shareholder and CMKX is the most Naked Shorted stocks in the history of the stock market. Trillions of Shares sold to investors with 703 Billion shares outstanding. It has also traded the most shares in one day in the history of the stock market which was 40 Billion shares traded in one day.
In the year 2000 when my margin account was getting fed calls, I had to liquidate 3 times the margin call worth of stock within 3 days. If I did not do this the brokerage firm would automatically sell the stock out of my account. This is not what brokerage firms,market makers and hedge funds are required to do. Because of you're failure as the regulatory body these criminals remain above the Law and are allowed to get away with these criminal acts.
I am happy to hear about the Commissions recent action to strengthen Regulation SHO through the elimination of Regulation SHOs grandfather provision. Also pleased that Chairman Cox has personally spoken about the abuses of naked short selling and the need to end this manipulative practice.
This is exactly what caused the stock market crash of 1929 and rules were put in place to prevent that from happening again.Congress who created you're waste of a commission is equally culpable because they have not shut you down yet. Despite Chairman Coxs public comments, these abuses continue.Put an end to this criminal enterprise NOW.
The elimination of the options market maker exception and the grandfather provision will significantly strengthen Regulation SHO, these changes alone will not 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.
Sincerely,
Jay Sea