Subject: Naked short rule S7-25-08

September 22, 2008

Gentlemen; With regard to the proposed new naked short rules, there is one glaring omission, as follows:

The DTCC lends out shares far in excess as to what they have on deposit, creating counterfeit shares in companies far in excess of the issued amount, further diluting share value and trading price of companies. This MUST BE STOPPED. The disbanding of the DTCC and formation of of a new entity, overseen by Dept of Justice, needs to happen to protect the integrity and survival of the US financial markets.

As a former CEO of a public company destroyed by these actions by the DTCC, I am well aware of which I speak.

Rod Smith