July 18, 2008
I am a private investor in the precious metals sector. I have been personally affected by "naked" short selling as the Junior Gold Exploration shares have been targeted by hedge funds. This practice has become blatant and widespread.
Reg. SHO is ineffectual because it fails to place the onus on the BROKER DEALER to assure delivery by borrowing the shorted shares. The BROKER DEALER is where the accountability must lie. As currectly written, the regulation ENCOURAGES brokers to "look the other way."
Naked short selling is a long-time violation of present regulations. The recent attempt to ban naked short selling by using an emergency declaration on SELECTED financial entities is an outrage.
SELECTIVE APPLICATION OF THE LAW is a total violation of the need of all forms of jurisprudence to deal equally will all it regulates.
SHO has the apparent effect of BLESSING naked short selling against all other investment sectors. Please simply ENFORCE the currect regulations, across ALL sectors, without PREJUDICE.
Francis X. Werzinger Jr.
Hamden, CT 06518