July 27, 2008
Chairman Christopher Cox
The Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549
Re: Comments on S7-20-08
Dear Chairman Cox,
Pursuant to Section 12(k)(2) of the Securities Exchange Act of 1934, on July 15, 2008, the Securities and Exchange Commission ("Commission") issued an Emergency Order (the "Order") related to short selling securities of the companies identified in Appendix A of the Order. The recently issued guidance is a welcome stance taken by the SEC. It is concerning that it has taken circumstances of this magnitude to see the Commission enforce what is not allowed by the 1933 and 1934 acts to begin with. The creation of artificial securities that act as placeholders for failed deliveries is an abhorrent practice that artificially manipulates price, renders fair price discovery ineffective and violates securities law.
I commend the Commission for taking this important step to protect Americas investors and look forward to this being extended to all securities. To allow investors of a few companies to benefit and leave the investors of small companies that have been affected to a much larger degree without this important protection is not acceptable. I look forward to investors in all companies having the same protection that large banks have currently been extended.
I represent the interest of myself and all subscribers of my investment advisory newsletter and all small investors everywhere that need the SEC to insure our interests are protected.