August 8, 2008
Many people think naked short selling is already illegal, but that isn't true. Shares are normally delivered to the buyers within three days of the trade. But in most stocks, including those covered by our emergency order, that three-day period can be extended indefinitely. . . .
. . .But when someone fails to borrow and deliver the securities needed to make good on a short position, after failing even to determine that they can be borrowed, that is not contributing to an orderly market — it is undermining it. – Chris Cox
No, Mr. Chairman, You are wrong, naked shorting IS illegal how can you borrow something that doesnt exist? It defies all laws of normal markets where supply and demand should govern. I agree with the chairman that normal short selling is healthy for markets, but only if the markets can assure that the practice of naked short selling does not happen as a result. If naked short selling is too cumbersome to detect and enforce, then short selling should be eliminated as well.
At the same time, eliminating the prospect of naked short selling will help assure investors that it is safe for them to participate, and that the current declining market is not the product of unseen manipulators and "distort and short" artists. – Chris Cox
I am amazed at the actions of the SEC with their regards to the order of July 15, 2008 concerning a "temporary" rebalance of 19 financials that were presumably the target of naked shorting and the potential for harm to our financial system. Your job is to assure the "confidence of trust" for the investing public. When you selectively decide to "temporarily" enforce rules at your discretion it undermines the public trust in our markets and the SEC becomes the very manipulator it is supposedly trying to discourage. In my opinion, this is the problem with our dollar, our economy and our markets at this point in time.
If these actions need to be taken, they should be enforced across the market and not just temporarily, otherwise you do a great disservice to the investing community. The recent run in the market has been artificially created by your actions of July 15. It is absolutely reprehensible that this is happening in the United States of America that the SEC has selectively chosen to manipulate the markets
ENFORCE THE ORDER FOR EVERY SECURITY IMMEDIATELY
Mark S. Wright, CPA