July 17, 2008
Who do you work for? The American public or a select few financial companies?
I have been writing letters and posting comments for nearly two years and nothing has changed. The Commission has yet to simply enforce the existing regulations against NAKED SHORT SELLING, a practice harmful not only to individual investors, but to our economy as well.
I support elimination of the Market Makers exemption.
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 mismarked sales as "long" when they are NAKED short which counterfeits shares--an illegal activity
In the event of failure to amend rule 200 (g) (1), please make and release a cost anaylsis incurred by equity investors.
The SEC must do a cost analysis incurred by equity securities investors if you do not eliminate the market maker exemption as your new data clearly shows the fails are being produced by invoking that exemption which, in turns, harms equity investors.
How are you actually protecting investors? Are the only investors that count the ones that also get exemption for the LAW to make profits?
What happens to those investors when the US public loses confidence in the financial markets because of YOUR (the SEC) lack of enforcement of laws that have been in place since 1934? The market collapses when everyone pulls their money out. Do you at the SEC want to be responsible for this?
Do your job enforce the law. Quit trying to make your banks happy, do the RIGHT thing, what you are in existence to do, and protect the individual investor, no matter what their net worth.