From: Carl C. Lochen [carlclochen@cheqnet.net]
Sent: Friday, January 09, 2004 10:17 AM
To: rule-comments@sec.gov
Subject: (s7-23-03) comments about the proposed SHO rule to the SEC

When I read through these interesting articles, it strikes me that the functions 
performed by market makers are antiquated in today's world of fast computer networks 
performing trillions of operations per second. 

In the past market makers were needed to provide artificial shares to make the 
transactions take place smoothly until real shares could be located. Today, their 
services should be unnecessary , since all bids and asks for shares can be 
electronically made available instantly on the computer networks. 

The argument the market makers use to justify their existence, is that they provide 
liquidity to the markets, more efficient markets (read between the lines; more 
transactions equals more commisions for the brokers) and prevent pump and dump 
operations by insiders. Seriously, do these corrupt overseers expect us to belive 
they are selling counterfeit shares for profit to do the public a service? I thought 
markets were dictated by supply and demand? If people don't want to make their 
shares available for sale or or lend them to you, then perhaps it is just as well,
not to buy those shares. 

Xerox copying 20 dollar bills lands you a prison sentence of 10 years or more, 
so should counterfeiting of shares. 

I sincerely hope the SEC in the new SHO rule denies any exceptions for the market 
makers, and instead forces the US securities and exchange markets to fully implement 
computer technology for the transactions. 

Otherwise, the SEC is just a corrupt body catering to the Wall Street institutions 
it is supposed to watch.