Subject: File No. S7-19-07
From: Ron Dunn

July 12, 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 appreciate the opportunity to provide comments on the Commissions proposed amendments to Regulation SHO.

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., by years end). 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 Cox's public comments, these abuses continue.

I suggest some added teeth in Reg SHO.

I urge the SEC to make the following ajustment to the Reg SHO

Add to the Reg SHO: Any FTD's that is created needs to have a SAR FinCEN 101 SAR-SF form filed. The SEC will need to create a mechanism to handle SAR/FTD that clear because of many reasons, but the SEC needs to address the ones that don't promptly clear.

Also the SEC needs to go back in time and use the grandfather clause to it's advantage by forcing FTD's into a SAR based units and deal with them by forcing collection on every FTD/SAR created.

Quote is from page 112
"Significantly, among the SAR matters that a broker-dealer must report when it detects them are insider trading, securities fraud, market manipulation, mail fraud, wire fraud, and other violations commonly associated with the securities industry (e.g., wash sales, pre-arranged trades, forgery, and embezzlement/theft).92 This is a sound reminder that such characteristic forms of market misconduct fall under the category of suspicious activity"

Anyone who does not complete a FinCEN 101 SAR-SF will be in violation of the statue and could be penalized under the Patriot Act.

Under the SAR reportting for the Securities and Futures Industries

Any transaction or pattern of transactions conducted or attempted involving funds or other assets
of at least $5,000 if the BD, FCM, or IB knows, suspects, or has reason to suspect the funds are:

1)Derived from illegal activity
2)Intended to hide or disguise funds or assets derived from illegal activity
3)Designed to evade reporting requirements of the BSA or other laws or regulations


Ron Dunn