July 24, 2008
Dear Chairman Cox,
It is outrageous to me that naked shorting should be allowed anywhere in the market. Pushing legitimate companies down with phantom shares isn't good for the economy, jobs, or innovation. In fact, it isn't good for anyone but those seeking to fraudulently manipulate markets for their own gain.
I've recently read that some hedge funds are upset about the rule, claiming it makes shorting "risky." Well, guess what? Markets are risky, and as Mark Twain's Dauphin would say, "Ya pays your money, ya takes your chances." The market needs to be a level playing field for everyone, and those who insist on engaging in market manipulation need to face fines and jail time. No one is above the law. At least, no one should be. Eliminate the loopholes, and make the letter of the law match the intent.