July 10, 2008
To the SEC,
Regulation SHO has been a complete failure. Many smaller "pink sheet" stocks such as CMKX have suffered tremendously due to loopholes that have been utilized by financial criminals. Whether the SEC will admit it or not, "Naked Shorting" does exist. I guess you call them "Fail to Delivers," so it doesn't sound as bad. The 60,000+ shareholders of CMKX will not go away until the SEC does the job they were suppose to. Protect the investors. Enforce your rules and regulations.
I support amendment to rule 203(b) (3) (iii) of Regulation SHO - completely eliminating the close out exemption for option market makers as proposed (not alternative 1 or 2).
I support amendment to rule 200(g)(1)which will require a "locate" on short sales securities and proper marking of sales as "long" or "short".
I also support amendment to rule 200(g)(1) proposed in the second round in release 34-56213 File No. S7-19-07 because equity investors are being harmed from mis-marked sales as "long" when they are NAKED short which counterfeits shares--an illegal activity